Indian rupee ended lower on Monday as sustained foreign fund outflows and the strength of the American currency in the overseas market weighed on investor sentiments. However, a positive tone in domestic equities and a decline in crude oil prices moderated the downside. Traders were worried after the Reserve Bank of India (RBI) data showed that India’s forex reserves declined by $2.36 billion to $583.53 billion during the week ended October 20. On the global front, Sterling was broadly flat against the dollar and euro on Monday as traders looked ahead to a Bank of England (BoE) meeting on Thursday where rates are expected to be held and the outlook is likely to be more in focus after a run of weak UK economic data. The British pound has largely been on the back foot in currency markets in recent weeks as risk appetite has faded, weighed by jitters in the stock market and war in the Middle East.
Finally, the rupee ended at 83.26 (Provisional), weaker by 1 paisa from its previous close of 83.25 on Friday. The currency touched a high and low of 83.27 and 83.24 respectively.
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