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Rupee depreciates against dollar on Tuesday

31 Jan 2023 Evaluate

Indian Rupee ended lower against the US dollar on Tuesday after the Economic Survey 2022-23 said the domestic unit may remain under pressure on account of plateauing of exports and subsequent widening of current account deficit. Traders overlooked International Monetary Fund’s (IMF) statement that inflation in India is expected to come down from 6.8 percent in the current fiscal year ending March 31 to 5 percent the next fiscal, and then drop further to 4 percent in 2024. On the global front, dollar ticked higher on Tuesday ahead of a raft of central bank decisions but remained on track for its fourth consecutive monthly loss. The Federal Reserve will set interest rates on Wednesday, followed by the European Central Bank (ECB) and Bank of England (BoE) on Thursday.

Finally, the rupee ended at 81.93 (Provisional), depreciate by 41 paise from its previous close of 81.52 on Monday. The currency touched a high and low of 82.07 and 81.58 respectively.

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