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Rupee ends lower against greenback on Monday

25 Sep 2023 Evaluate

Indian rupee ended lower on Monday taking cues from subdued equity market sentiment and a firm American currency against major rivals overseas. Withdrawal of foreign funds from domestic equities and upward movement in crude oil prices also weighed on the Indian currency. According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,326.74 crore on Friday. FIIs have pulled out over Rs 10,000 crore from Indian equities in the first three weeks of September. Traders were concerned as the Reserve Bank said India’s foreign exchange reserves declined $867 million to $593.037 billion in the week ended September 15. Traders took note of report that S&P Global Ratings retained India's growth forecast for current fiscal at 6 per cent citing slowing world economy, rising risk of subnormal monsoons and delayed effect of rate hike. On the global front, dollar rose against the yen to an almost 11-month high on Monday, keeping traders focused on Japan intervention risks after the Bank of Japan and Governor Kazuo Ueda quashed hopes of any imminent move away from its stark ultra-loose monetary policy. 

Finally, the rupee ended at 83.13 (Provisional), weaker by 19 paise from its previous close of 82.94 on Friday. The currency touched a high and low of 83.15 and 83.04 respectively.


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