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Rupee ends weaker against greenback

01 Sep 2022 Evaluate

Erasing initial gains, Rupee ended weaker against dollar on Thursday due to lower-than-expected gross domestic product (GDP) data. Among macro-economic data, India’s gross domestic product (GDP) rose 13.5% year-on-year (y-o-y) in the April-June period. Though, it is the fastest annual expansion in a year, it was lower than the predictions made by the Reserve Bank of India (RBI; 16.2 per cent) and other market participants. Traders were also worried as S&P Global's Purchasing Managers' Index (PMI) edged down to 56.2 from the eight-month high of 56.4 recorded in July. Adding more worries, the output of eight core infrastructure sectors contracted to six-month low of 4.5 per cent in July 2022 against 9.9 per cent in the year-ago period. On the global front, sterling fell against the dollar on Thursday, adding to August losses that were its worst since late 2016, as storm clouds gather over the British economy.

Finally, the rupee ended at 79.56 (Provisional), weaker by 4 paisa from its previous close of 79.52 on Tuesday. The currency touched a high and low of 79.66 and 79.30 respectively.

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