Indian rupee ended weaker against dollar on Monday with fresh dollar demand by banks and importers and firm crude oil prices. Traders got worried as Reserve Bank of India (RBI) data showed that the country's foreign exchange reserves fell $6.687 billion to $564.053 billion in the week ended August 19. In the previous week ended August 12, the reserves declined $2.238 billion to $570.74 billion. Also, Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra has said that in the near-term, inflation trajectory continues to be ‘heavily contingent’ upon the evolving geopolitical developments, international commodity prices and global financial sector developments. Heavy selloff in Indian equity markets also added pressure on domestic currency. On the global front, dollar shot higher on Monday, briefly scaling fresh 20-year highs against a basket of other currencies, as Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down uncomfortably high inflation.
Finally, the rupee ended at 79.94 (Provisional), weaker by 10 paisa from its previous close of 79.84 on Friday. The currency touched a high and low of 80.15 and 79.93 respectively.
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