Extending losses for the second straight session, Indian rupee ended considerably lower against dollar on Monday, on account of sustained dollar demand from importers and banks. Traders were worried as data released by Reserve Bank of India showed India's foreign exchange (forex) reserves declined $3.8 billion to $524.5 billion for the week ending October 21. Reserves are at their lowest levels since July 2020. Since last year, reserves have declined by $115 billion. Further, a broad strengthening of the US dollar put pressure on the home currency. Traders overlooked Union Minister for Commerce and Industry Piyush Goyal’s statement that foreign trade would become a truly defining feature that would help India become a $30 trillion economy in the Amrit Kaal. On the global front, dollar advanced on Monday, regaining some ground lost earlier in the month, at the start of a week packed with data releases and central bank rate setting meetings, including by the Bank of England and the Federal Reserve.
Finally, the rupee ended at 82.81 (Provisional), weaker by 34 paisa from its previous close of 82.47 on Friday. The currency touched a high and low of 82.82 and 82.32 respectively.
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