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Rupee ends lower against dollar on Monday

16 Jan 2023 Evaluate

Indian rupee ended lower against dollar tracking muted trend in domestic equities. Traders got worried after India’s December 2022 trade deficit rose 12.8% at $23.76 billion as against $21.10 billion December 2021. India's exports declined around 12% on a year-on-year basis to $34.48 billion in December 2022 as against $39.27 billion in the same month last year. Traders ignored a report stating that India’s inflation based on wholesale price index (WPI) eased further to 4.95% (Provisional) for the month of December 2022 as against 5.85% recorded in November 2022 and 8.39% in October 2022. On the global front, dollar started the week on the back foot, hitting a seven-month low against a basket of major peers in Asian trade, with the yen in particular focus as traders ramped up bets the Bank of Japan will tweak its yield control policy further. 

Finally, the rupee ended at 81.59 (Provisional), weaker by 21 paise from its previous close of 81.38 on Friday. The currency touched a high and low of 81.74 and 81.27 respectively.


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