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Rupee depreciates against dollar on Wednesday

17 May 2023 Evaluate

Indian rupee weakened against the US dollar on Wednesday, weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities. Traders were cautious amid the UN's latest report showing that prospects for a robust global economic recovery remain dim as the lingering effects of the COVID-19 pandemic carry on. The report found that risks of a prolonged period of low growth stand, amid stubborn inflation, rising interest rates, and heightened uncertainties, in addition to the ever- worsening impact of climate change. Besides, India Meteorological Department (IMD) said a slight delay is expected in the onset of the southwest monsoon over Kerala and it is likely to arrive by June 4. On the global front, the pound slipped against a strengthening dollar on Wednesday and maintained its losses after Bank of England Governor Andrew Bailey reiterated he expected price pressures to ease, as soon as April.

Finally, the rupee ended at 82.38 (Provisional), weaker by 13 paise from its previous close of 82.25 on Tuesday. The currency touched a high and low of 82.45 and 82.29 respectively.

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