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Rupee depreciates against dollar on Wednesday

31 May 2023 Evaluate

Indian rupee weakened against the US dollar on Wednesday as intense selling pressure in domestic equities and a strong greenback overseas dented the sentiment. Traders were worried after Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh stated that hardening interest rates globally and worsening geo-political situation have impacted the foreign direct investment (FDI) inflows into India in 2022-23. Traders overlooked data showing that investment in the Indian capital markets through participatory notes has seen an upward trend in the past two months, with the number reaching Rs 95,911 crore in April-end, primarily driven by the country's robust economic growth. On the global front, sterling hit a 5-1/2 month high against the euro on Wednesday after data showing lower inflation in major European markets, but fell against the dollar as investors eyed Bank of England rate expectations for the pound's direction. 

Finally, the rupee ended at 82.74 (Provisional), weaker by 7 paise from its previous close of 82.67 on Tuesday. The currency touched a high and low of 82.76 and 82.64 respectively.

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