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Rupee ends weaker against dollar on Tuesday

06 Dec 2022 Evaluate

Rupee ended weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Traders were worried ahead of RBI Monetary Policy Committee meeting outcome. Besides, World Bank's India Development Update said India is affected by spillovers from the US, Euro area and China. It however saw the government meeting the fiscal deficit target of 6.4 percent of the GDP in 2022-23. Meanwhile, World Bank expects the inflation at 7.1 percent in current fiscal year. On the global front, U.S. dollar index held firm on Tuesday, following its biggest rally in two weeks after strong services data in the United States fuelled expectations for higher interest rates from the Federal Reserve than recently projected.

Finally, the rupee ended at 82.61 (Provisional), weaker by 76 paise from its previous close of 81.85 on Monday. The currency touched a high and low of 82.63 and 81.94 respectively.

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