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Rupee ends higher against dollar on Tuesday

21 Nov 2023 Evaluate

Indian rupee ended higher against dollar on Tuesday tracking the weakness of the American currency in the overseas market and positive domestic equities. Traders took note of Moody's Investors Service’s statement that the RBI's decision to tighten norms for unsecured personal loans is credit positive because lenders will need to allocate higher capital for such loans, thus improving their loss-absorbing buffers. Investors overlooked data showing that retail inflation for agricultural labourers and rural workers rose marginally to 7.08 per cent and 6.92 per cent in October, respectively, from 6.70 per cent and 6.55 per cent respectively in September 2023 due to higher prices of certain food items. On the global front, the yen rallied against the dollar on Tuesday as investors positioned for the possibility that the Bank of Japan will tighten monetary policy next year while the Federal Reserve loosens.

Finally, the rupee ended at 83.33 (Provisional), higher by 5 paise from its previous close of 83.38 on Monday. The currency touched a high and low of 83.37 and 83.32 respectively.

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