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Rupee depreciates against US dollar on Friday

08 Dec 2023 Evaluate

Indian rupee ended lower on Friday despite Reserve Bank of India kept the policy rate unchanged at 6.5%. Traders ignored report that India's foreign exchange reserves increased to $604 billion as on December 1, surpassing the $600 billion mark after a gap of about four months. The forex reserves were last above the $600 billion mark on August 11 this year. Besides, Reserve bank governor Shaktikanta Das said that the Indian rupee has exhibited low volatility compared to emerging market economy (EME) peers in the calendar year 2023, despite elevated US treasury yields and a stronger US dollar. On the global front, yen headed for a fourth weekly gain against the dollar on Friday, after its biggest rally in almost a year the day before, driven by a burst of optimism among traders that Japan’s ultra-low rates policy may be nearing an end. 

Finally, the rupee ended at 83.39 (Provisional), weaker by 3 paise from its previous close of 83.36 on Thursday. The currency touched a high and low of 83.39 and 83.33 respectively.

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