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Rupee ends lower against dollar on Thursday

15 Jun 2023 Evaluate

Rupee settled lower against dollar on Thursday pulled down by a strong greenback overseas and a negative trend in domestic equities. Traders were worried as domestic rating agency Crisil said the growth in aggregate GST collection for states is likely to moderate to 12-14 per cent in FY24 from 20 per cent in FY23. Investors ignored Moody's Investors Service’s latest report stating that the credit quality of Indian banks and non-bank financial institutions will remain resilient despite a challenging environment for banks globally. On the global front, U.S. dollar strengthened on Thursday after the Federal Reserve left interest rates unchanged but signalled further rate hikes to come this year as attention turned to the European Central Bank policy announcement later in the day. The Fed's policy decision snapped a string of 10 consecutive rate hikes, but the projections, or dot plot, showed policymakers expect two more increases by the end of 2023. Chair Jerome Powell said rate cuts in 2023 would not be appropriate. 

Finally, the rupee ended at 82.19 (Provisional), weaker by 14 paise from its previous close of 82.05 on Wednesday. The currency touched a high and low of 82.25 and 82.02 respectively.

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