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Rupee tumbles against dollar on Thursday

15 Dec 2022 Evaluate

Indian rupee tumbled against dollar on Thursday, following massive sell-off in domestic markets. Sentiments got hit as India Ratings said falling exports and high crude prices are set to push up current account deficit (CAD) in the second quarter to a 37-quarter high of 4.4 per cent of GDP at $36 billion as against $9.7 billion or 1.3 per cent in the year-ago period. Besides, former governor of the Reserve Bank of India, Raghuram Rajan said the next year will be difficult for the Indian economy as also for the rest of the world and the country failed to generate reforms needed for growth. He said policies should be formulated keeping in mind the lower middle class which suffered the most due to the coronavirus pandemic. On the global front, sterling weakened against a broadly firm dollar on Thursday ahead of a Bank of England meeting that's expected to conclude with a half-percentage-point hike in interest rates to tame inflation.

Finally, the rupee ended at 82.76 (Provisional), weaker by 27 paise from its previous close of 82.49 on Wednesday. The currency touched a high and low of 82.77 and 82.41 respectively.

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