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Rupee slips against dollar on Friday

18 Nov 2022 Evaluate

Indian rupee concluded weaker against dollar on Friday on account of continued dollar demand from importers and banks and lackluster trend in domestic equities. Sentiments remained pessimistic with Moody's Investors Service’s statement that a combination of weak growth in advanced economies, persistent inflationary pressures, the Russia-Ukraine conflict, tight financial conditions, and a subdued growth outlook for China will create a difficult environment for emerging markets (EM) in 2023. As regards India, Moody's said food and fuel remain the main drivers of inflation because they represent a larger share of the consumption basket. For example, rising food prices have contributed to almost half of the growth in headline inflation this year in India. On the global front, dollar eased on Friday, but was still headed for its largest weekly gain in a month, after Federal Reserve officials reiterated their commitment to raising U.S. interest rates more than markets currently anticipate.

Finally, the rupee ended at 81.70 (Provisional), weaker by 6 paisa from its previous close of 81.64 on Thursday. The currency touched a high and low of 81.78 and 81.52 respectively.

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