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Rupee ends lower against dollar on Tuesday

14 Mar 2023 Evaluate

Indian Rupee ended lower against the US dollar on Tuesday amid negative sentiment in the domestic equity markets and unabated foreign fund outflows. Traders got cautious after India’s CPI inflation in February remained above RBI’s tolerance range indicating more rate hikes in future. India's consumer price inflation (CPI)-based inflation eased marginally to 6.44 per cent in February, compared to 6.52 per cent in January. Markets participants overlooked reports that India’s inflation based on wholesale price index (WPI) declined further to 3.85% for the month of February 2023 against 4.73% recorded in January 2023. On the global front, dollar rose in somewhat calmer trading on Tuesday, after tumbling on Monday following the collapse of Silicon Valley Bank (SVB), as investors waited for the release of U.S. consumer inflation data later in the day.

Finally, the rupee ended at 82.49 (Provisional), depreciate by 26 paise from its previous close of 82.23 on Monday. The currency touched a high and low of 82.55 and 82.24 respectively.

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