Indian rupee ended considerably lower against the US dollar on Monday as a stronger dollar in the overseas market and a muted trend in domestic equities weighed on investor sentiments. Traders were worried as latest central bank data showed that the Reserve Bank of India’s (RBI’s) foreign exchange reserves declined by $5.7 billion to an 11-week low of $561.27 billion in the week ended February 17. Besides, continued sell-off by foreign investors dampened sentiments in domestic markets. Foreign investors have turned cautious and pulled out Rs 2,313 crore from Indian equities so far this month. On the global front, dollar wavered near a seven-week high on Monday, as investors took stock of last week's strong economic data and rapid reconsideration of where interest rates will peak. Data on Friday showed U.S. consumer spending rebounded sharply in January, while inflation accelerated.
Finally, the rupee ended at 82.85 (Provisional), weaker by 10 paise from its previous close of 82.75 on Friday. The currency touched a high and low of 82.94 and 82.79 respectively.
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