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Indian rupee weakens against dollar on Tuesday

29 Aug 2023 Evaluate

Indian rupee weakened considerably against dollar on Tuesday amid foreign fund outflows. Traders were worried with a private report that India is poised for its lowest monsoon rains in eight years, with the EI Nino weather pattern seen crimping September precipitation after an August that is on track to be the driest in over a century. Investors overlooked the private report stating that India Ratings said with falling trade deficit, India's current account deficit is likely to narrow to around $10 billion or 1 per cent of GDP in the April-June quarter of the ongoing fiscal. The country's current account deficit (CAD) stood at $18 billion or 2.1 per cent in the corresponding period of the previous fiscal. On the global front, U.S. dollar was subdued on Tuesday after a strong run as traders held off from large bets ahead of a slew of economic data this week, while the Japanese yen languished near levels that triggered intervention last year. 

Finally, the rupee ended at 82.75 (Provisional), weaker by 12 paise from its previous close of 82.63 on Monday. The currency touched a high and low of 82.75 and 82.58 respectively.


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