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Rupee ends lower against greenback

23 Aug 2022 Evaluate

Rupee ended weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Traders were worried as foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 453.77 crore on Monday, exchange data showed. However, downfall remain capped with private report stating that The Reserve Bank's rate setting panel is likely to opt for slowing down the pace of hikes and increase the repo rate by 0.25 per cent in September. The central bank has already hiked the repo rate by 1.40 per cent in three consecutive actions since May this year, in response to the uncomfortably high inflation which has been consistently breaching upper end of the tolerance band set by the government to the RBI. On the global front, euro hit a fresh two-decade low on Tuesday, dealt a fresh blow by renewed concern that an energy shock will keep inflation elevated and makes a recession in Europe all but certain.

Finally, the rupee ended at 79.87 (Provisional), weaker by 3 paisa from its previous close of 79.84 on Monday. The currency touched a high and low of 79.90 and 79.81 respectively.

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