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Rupee depreciates against dollar on Thursday

03 Aug 2023 Evaluate

Rupee settled lower against dollar on Thursday amid weak domestic equities and a stronger greenback in the overseas market. Sustained foreign fund outflows and firm crude oil prices further dented sentiments. Traders were cautious amid a private report stating that with inflation inching up, the Reserve Bank of India is likely to maintain the status quo on key interest rates. The six-member Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, will hold the meeting from August 8 to 10. Investors ignored report stating that India’s services sector expanded at its fastest pace in over 13 years in the month of July, aided by substantial improvement in international demand. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index jumped at 62.3 in July from 58.5 in June. On the global front, the dollar scaled a four-week peak against major peers on Thursday after upbeat labour market data a day earlier, while sterling edged lower ahead of an expected rate hike from the Bank of England.

Finally, the rupee ended at 82.74 (Provisional), weaker by 7 paise from its previous close of 82.67 on Wednesday. The currency touched a high and low of 82.81 and 82.66 respectively.

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