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Rupee ends lower against greenback on Monday

23 Oct 2023 Evaluate

Indian rupee ended lower on Monday due to sharp losses in local stock markets and US bond yields surging to 5 per cent. Traders were worried as the Reserve Bank of India’s data (October 2023 bulletin) stated that net foreign direct investment (FDI) in India, inflows minus outflows, declined sharply in April-August this year to $2.99 billion from $18.03 billion in the same period last year on moderation in global activities and a rise in repatriation. Investors overlooked Finance Minister Nirmala Sitharman’s statement that the government is mindful of the fiscal deficit management and will ensure the burden of servicing debt is not passed on to next generation. She said the government is looking at the ways in which it can bring down the overall debt. On the global front, Russian rouble strengthened against the dollar on Monday to a near six-week high, extending the strong gains made late last week with the support of high oil prices and exporters' preparations for month-end tax payments.

Finally, the rupee ended at 83.18 (Provisional), weaker by 6 paisa from its previous close of 83.12 on Friday. The currency touched a high and low of 83.19 and 83.09 respectively.

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