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Rupee depreciates against dollar on Tuesday

21 Mar 2023 Evaluate

Indian Rupee depreciated against the US dollar on Tuesday amid a rise in crude oil prices and unabated foreign fund outflows from the domestic equity market. Investors awaited the Federal Reserve's interest rate decision. Traders overlooked Finance Ministry’s statement that Indian economy is expected to grow at 7 per cent in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25-month low in January. On the global front, dollar steadied and sterling fell on Tuesday as traders reckoned banking stress would keep the Federal Reserve and the Bank of England from hiking rates much further, or at all, later in the week.

Finally, the rupee ended at 82.66 (Provisional), depreciate by 10 paise from its previous close of 82.56 on Monday. The currency touched a high and low of 82.70 and 82.53 respectively.

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