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Rupee ends lower against US dollar on Monday

17 Oct 2022 Evaluate

Indian rupee ended lower against the US dollar on Monday, on increased demand for the greenback from importers and banks. Traders failed to take support with Finance Minister Nirmala Sitharaman’s statement that Indian economy will stay on course despite global headwinds and is projected to grow at seven per cent in fiscal 2022-23, and attributed this to the conducive domestic policy environment and focus on key structural reforms. She also reiterated that the inflation rate, which is hovering over 7 per cent in India, is at a manageable level compared to where some other countries are at present. Besides, Reserve Bank of India's (RBI) weekly statistical supplement showed that India's foreign exchange reserves rose to $532.87 billion in the week through October 7. The country's reserves rose by $204 million from the previous week, the first increase since the week ended July 29. On the global front, the rouble strengthened to a one-week high against the dollar on Monday, supported by the start of a favourable month-end tax period, as oil prices edged lower and the spectre of geopolitical risk continued to lurk over Russian markets.

Finally, the rupee ended at 82.30 (Provisional), weaker by 11 paisa from its previous close of 82.19 on Friday. The currency touched a high and low of 82.42 and 82.30 respectively.

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