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Rupee ends weaker against greenback

24 Aug 2022 Evaluate

Indian rupee ended weaker against the US dollar on Wednesday, on increased demand for the greenback from importers and banks. Trade sentiment remained cautious as Standard and Poor’s (S&P) said credit profiles could deteriorate for up to $114 billion of debt in the books of Indian companies tackling rising interest rates and inflation. However, downside remained capped as Commerce Secretary BVR Subrahmanyam said India's merchandise exports are likely to be around $470-480 billion in the current fiscal against $420 billion in 2021-22. Some support came in as SBI Ecowrap report stated that India's GDP is expected to be much higher in Q1FY23 and growth is expected around 15.7 per cent with a large possibility of an upward bias because several indicators have shown good progress in the Indian economy. On the global front, euro was within a whisker of a two-decade low on Wednesday amid growing recession fears fuelled by a possible energy supply crunch.

Finally, the rupee ended at 79.86 (Provisional), weaker by 3 paisa from its previous close of 79.83 on Tuesday. The currency touched a high and low of 79.87 and 79.68 respectively.

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