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Rupee depreciates against dollar on Friday

13 Oct 2023 Evaluate

Rupee settled lower against dollar on Friday on surging crude oil prices overseas and a downward trend in the domestic equities. Investors ignored data showing that India’s Consumer Price Index (CPI)-based inflation (retail inflation) eased to a three-month low of 5.02 per cent year-on-year in September from 6.83 per cent in August, with moderation in vegetables and fuel prices. Besides, India's industrial production growth rose to a 14-month high of 10.3 per cent in August with good performance by the manufacturing, mining and power sectors. Moreover, India's merchandise trade deficit fell to a five-month low of $19.37 billion in September. While goods exports last month stood at $34.47 billion, imports were at $53.84 billion. On the global front, U.S. dollar held firm on Friday after its biggest daily increase since March the day before, as hot U.S. consumer prices data revived prospects that the Federal Reserve may have to raise rates further to get inflation back towards its 2% target.

Finally, the rupee ended at 83.28 (Provisional), weaker by 4 paise from its previous close of 83.24 on Thursday. The currency touched a high and low of 83.29 and 83.23 respectively.


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