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Rupee ends higher against dollar on Wednesday

09 Aug 2023 Evaluate

Indian Rupee ended higher against the US dollar on Wednesday supported by a weak American currency against major rivals overseas. Traders overlooked a private report stating that India's retail inflation likely accelerated to 6.40% in July on surging food prices, breaching the upper end of the Reserve Bank of India's 2%-6% tolerance band for the first time in five months. Food prices, which account for nearly half of the inflation basket, have soared in the last two months largely due to an erratic monsoon throughout the country, pushing tomato prices at wholesale markets up more than 1,400% in the past three months. On the global front, dollar eased on Wednesday after data showed the Chinese economy slipped into deflation last month, which upped the chances for the government to roll out extra stimulus measures and nudged investors into risky assets.  

Finally, the rupee ended at 82.85 (Provisional), stronger by 6 paise from its previous close of 82.91 on Tuesday. The currency touched a high and low of 82.86 and 82.80 respectively.

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