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Rupee ends lower against dollar on Tuesday

07 Nov 2023 Evaluate

Indian rupee ended lower against dollar on Tuesday tracking a strong American currency overseas and sustained foreign fund outflows. Traders were concerned as financials witnessed the most FPI selling in October to the tune of Rs 118.04 billion. Besides, private report stated that a sustained oil price of $110 a barrel could undermine India’s economic stability, likely forcing the central bank to resume hiking interest rates. It said as the world’s third-biggest consumer of oil, India is one of the most exposed economies in Asia to rising crude prices. A $10 increase in oil prices boosts inflation by 50 basis points and contributes to a 30 basis-point widening in the current account balance. On the global front, dollar advanced on Tuesday as last week's rally in riskier currencies took a breather, while the Aussie slid after the Reserve Bank of Australia raised rates but tweaked its outlook, spurring investor expectations that rate hikes are nearing an end.

Finally, the rupee ended at 83.26 (Provisional), weaker by 5 paise from its previous close of 83.21 on Monday. The currency touched a high and low of 83.27 and 83.22 respectively.

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