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Rupee ends lower on Wednesday

28 Feb 2024 Evaluate

Indian rupee ended lower on Wednesday tracking bearish equity markets and foreign fund outflow amid increased month-end demand for the American currency. Traders were cautious amid a private report stating that while it seems increasingly unlikely the US economy is headed for recession, small businesses still face headwinds like higher costs and difficulty retaining qualified workers. Traders shrugged off rating agency ICRA’s latest report stating that the borrowing cost for states continued to fall for the third week in a row, with the weighted average price falling to 7.44 per cent in the debt auction on February 27, 2024. The cost had remained at a two-year high throughout January sniffing at 7.8 per cent. On the global front, dollar firmed up on Wednesday as markets awaited a raft of global inflation data for clues on when central banks may start easing policy, while the New Zealand dollar tumbled after its central bank trimmed its forecast for a peak in rates.

Finally, the rupee ended at 82.91 (Provisional), weaker by 2 paise from its previous close of 82.89 on Tuesday. The currency touched a high and low of 82.95 and 82.89 respectively.

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