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Rupee ends lower on Wednesday

13 Dec 2023 Evaluate

Indian Rupee ended lower against the US dollar on Wednesday amid a strong American currency overseas. Traders were worried as India’s retail inflation based on the Consumer Price Index (CPI) rose to a three-month high of 5.55 per cent in November 2023 on firming food prices, including vegetables and cereals. Though it remains within the Reserve Bank of India’s (RBI’s) comfort zone of less than 6 per cent. Traders overlooked report that India’s industrial production growth jumped to a 16-month high of 11.7 per cent in October 2023 compared to the same month of the previous year. Index of Industrial Production (IIP) growth had come in at a three-month low of 5.8 percent in September. On the global front, dollar ticked up slightly on Wednesday as traders prepared for the conclusion of a Federal Reserve policy meeting that could offer some insight into when the U.S. central bank will begin lowering interest rates. Sterling was among the weakest performers on the day, after data showed the UK economy contracted in October, raising the risk of a recession and potentially complicating the efforts of the Bank of England (BoE) to stick to its stance against cutting rates when it meets on Thursday. 

Finally, the rupee ended at 83.42 (Provisional), weaker by 5 paise from its previous close of 83.37 on Tuesday. The currency touched a high and low of 83.42 and 83.38 respectively.

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