Indian rupee ended lower against the US dollar on Tuesday, tracking a negative trend in domestic equities and the strength of the American currency in the overseas market. Traders were cautious with the commerce department stating that growing attacks on commercial shipping vessels travelling through the lower Red Sea have resulted in a combined impact of higher freight costs, insurance premiums and longer transit times. He cautioned that it can make imported goods significantly more expensive. Traders took a note of the commerce ministry’s data showing that India’s merchandise exports registered marginal growth of 0.97 per cent to $38.45 billion in December 2023 as compared to $38.08 billion in December 2022. Imports declined by 4.85 per cent to $58.25 billion in December 2023 as compared to $61.22 billion in December 2022 due to a dip in crude oil shipments. On the global front, the dollar rose on Tuesday as investors tempered their expectations for a March rate cut from the Federal Reserve, while the pound and yen fell as inflationary pressures subsided.
Finally, the rupee ended at 83.12 (Provisional), weaker by 26 paise from its previous close of 82.86 on Monday. The currency touched a high and low of 83.12 and 82.92 respectively.
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