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Rupee depreciates against dollar on Thursday

31 Aug 2023 Evaluate

Rupee settled lower against dollar on Thursday tracking a firm American currency and rising crude oil prices. Besides, negative sentiment in the equity market and outflow of foreign funds also weighed on the domestic unit. Sentiments were cautious as CareEdge Ratings in its latest report has said the India’s rural demand is vulnerable and could be further impacted by the ‘dual blows’ of lower income and high food inflation owing to an erratic monsoon. Meanwhile, Reserve Bank of India (RBI) in its latest report said that listed private non-financial companies’ sales growth moderated during Q1FY24. As per the data, sales growth year on year (y-o-y) of listed private non-financial companies moderated to 2.1 per cent in Q1FY24 from 8.0 per cent in the previous quarter and 41.0 per cent a year ago. On the global front, the pound firmed against the euro on Thursday as euro zone data showed core inflation slowing, while the Bank of England's chief economist said British interest rates should probably stay high to quash 'stubbornly high' core inflation.

Finally, the rupee ended at 82.76 (Provisional), weaker by 13 paisa from its previous close of 82.63 on Wednesday. The currency touched a high and low of 82.79 and 82.58 respectively.

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