The Indian rupee ended weaker against the US dollar on Monday weighed down by a surge in crude oil prices and selling pressure by foreign investors. Traders were cautious as retail inflation for farm and rural workers inched up to 7.43 per cent and 7.26 per cent in July compared to 6.31 per cent and 6.16 per cent, respectively, in June this year, mainly due to higher prices of certain food items. Investors overlooked report stating that Moody’s Investors Service affirmed India’s sovereign rating at ‘Baa3’ with stable outlook and said high growth will support a gradual increase in income levels, which will further contribute to economic strength. It expects India’s economic growth to outpace all other G20 economies through at least the next two years, driven by domestic demand. On the global front, the dollar held firm on Monday following five straight weeks of gains, as investors looked ahead to the Federal Reserve's Jackson Hole symposium for guidance on where rates might settle when the dust of this hiking cycle clears.
Finally, the rupee ended at 83.13 (Provisional), weaker by 3 paise from its previous close of 83.10 on Friday. The currency touched a high and low of 83.16 and 83.05 respectively.
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