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Rupee tumbles for fifth straight session

06 Sep 2023 Evaluate

Indian rupee ended lower against dollar on Wednesday, on increased demand for the greenback from importers and banks. This is the fifth consecutive session when the rupee was traded lower against dollar. Sentiments remained fragile as S&P Global Ratings Economist (Asia Pacific) Vishrut Rana stated that inflation in India is likely to remain elevated in the near terms but government policies will prevent it from rising further. In July, the consumer price index based retail inflation spiked to 15-month high of 7.44 per cent in July, with specific food commodities mainly driving the increase. Besides, elevated crude oil prices and strength of the American currency weighed on investor sentiments. On the global front, dollar held close to a six-month peak as jitters over China and global growth weighed on risk appetite, while the yen strengthened as Japan's top currency diplomat sent a warning about the currency after it earlier dropped to a 10-month low.

Finally, the rupee ended at 83.13 (Provisional), weaker by 9 paise from its previous close of 83.04 on Tuesday. The currency touched a high and low of 83.18 and 83.02 respectively.

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