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Rupee ends weak on dollar demand from importers

02 Sep 2022 Evaluate

Indian rupee ended weaker against the US dollar on Friday, on increased demand for the greenback from importers and banks. Sentiments were dented as chief economist at State Bank of India revised downward the full-year growth forecast to a low 6.8 per cent from 7.5 per cent earlier for FY2023, citing the way below GDP numbers for the first quarter. More pessimism came as foreign institutional investors (FIIs) have net sold shares worth Rs 2,290.31 crore on September 1. Some concerns also came with report stated that though investments as a percentage of gross domestic product (GDP) rose year-on-year in the first quarter of 2022-23 (Q1FY23), they are still below the 30 per cent mark that is required to put the economy on a sustained growth path. On the global front, pound steadied on Friday as some calm returned at the end of a bruising week in which concerns about the UK's deteriorating economic outlook, the policy direction under a new prime minister and demand for dollars all hurt the British currency.

Finally, the rupee ended at 79.87 (Provisional), weaker by 31 paisa from its previous close of 79.56 on Thursday. The currency touched a high and low of 79.87 and 79.61 respectively.

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