The Indian rupee ended weaker against the US dollar on Monday, weighed down by the strength of the American currency in the overseas market. Traders were worried after India’s forex reserves dropped by $4.339 billion to $589.138 billion for the week ended May 26. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. Traders took a note of report that India's service Purchasing Managers' Index (PMI) was recorded at 61.2 in May. Although it is lower than 62 in April, May's figure is the second-highest since June 2010. A print above 50 in the survey denotes expansion of services activity, and below that suggests contraction. India's headline figure has been in the expansion zone for 23 months since August 2021. On the global front, dollar edged up against major peers on Monday, as markets priced in around a 1-in-4 chance of the U.S. Federal Reserve raising benchmark rates this month after robust jobs data on Friday.
Finally, the rupee ended at 82.68 (Provisional), weaker by 29 paise from its previous close of 82.39 on Friday. The currency touched a high and low of 82.68 and 82.45 respectively.
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