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Rupee ends lower against dollar on Tuesday

19 Dec 2023 Evaluate

Indian rupee ended lower against dollar on Tuesday due to dollar buying by importers amid lingering worries over oil supplies through the Red Sea route. Investors were worried as economic think tank the Global Trade Research Initiative (GTRI) in its latest report has said that India's exports worth $775 million to the UK may be impacted due to Britain's decision to introduce carbon tax on products such as iron and steel, aluminium, fertiliser and cement, from 2027.  The UK government on December 18 decided to implement its Carbon Border Adjustment Mechanism (CBAM) starting 2027. On the global front, yen tumbled on Tuesday after the Bank of Japan (BOJ) maintained its ultra-loose monetary policy, as expected, and more surprisingly did not signal a change was approaching, while the dollar drifted at the low end of its recent range.

Finally, the rupee ended at 83.18 (Provisional), weaker by 8 paise from its previous close of 83.10 on Monday. The currency touched a high and low of 83.22 and 83.09 respectively.

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