Indian rupee ended lower on Monday tracking a negative trend in domestic equities. Persistent foreign fund outflows also weighed on the local unit. Traders were worried as India’s Index of Industrial Production (IIP) decelerated to 5.8 per cent in September 2023 from a 14-month high of 10.3 per cent in August 2023, in line with slowdown in manufacturing activity. Industrial production had grown by 3.3 per cent in September 2022. Though on an annual basis, the output of manufacturing and mining sectors showed an improvement. On the global front, the dollar climbed to its highest levels in over a year against the Japanese yen on Monday, supported by a scaling back of expectations for U.S. Federal Reserve interest rate cuts next year.
Finally, the rupee ended at 83.32 (Provisional), weaker by 4 paise from its previous close of 83.28 on Friday. The currency touched a high and low of 83.33 and 83.28 respectively.
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