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Rupee ends weaker against dollar on Tuesday

20 Dec 2022 Evaluate

Rupee ended weaker against dollar on Tuesday on the back of negative trend in domestic equities and rising crude prices in the global markets. Traders were worried amid a private report stating that liquidity in the banking system has slipped into a deficit for the first time in three weeks, prompting banks to borrow the largest quantum of funds from the Reserve Bank of India (RBI) in around a month and a half. On the global front, the yen surged to a four-month peak against the dollar on Tuesday after the Bank of Japan stunned markets by deciding to review its yield curve control policy and widen the trading band for the 10-year government bond yield. While it kept broad policy settings unchanged - pinning short-term JGB yields at -0.1% and the 10-year yield around zero - the BOJ decided to let long-term yields to move 50 basis points either side of its 0% target, wider than the 25 basis point band previously.

Finally, the rupee ended at 82.75 (Provisional), weaker by 13 paise from its previous close of 82.62 on Monday. The currency touched a high and low of 82.88 and 82.69 respectively.

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