Rupee settled lower against dollar on Friday amid weak sentiment in the equity markets and a strong dollar against major rivals overseas. Investors were worried with private report stating that India's headline retail inflation is expected to have crashed past the upper bound of the Reserve Bank of India's (RBI) 2-6 percent tolerance band in July on its way to a nine-month high due to a surge in vegetable prices. Traders took a note of report that Reserve Bank of India (RBI) has raised the cash reserve ratio in an incremental 10 per cent in proportion to banks’ liquidity. On the global front, the dollar headed for a fourth weekly gain on Friday even after data showed U.S. inflation did not pick up as strongly as expected in July, reinforcing the existing view among investors that the Federal Reserve is unlikely to raise rates much more.
Finally, the rupee ended at 82.82 (Provisional), weaker by 16 paise from its previous close of 82.66 on Thursday. The currency touched a high and low of 82.87 and 82.73 respectively.
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