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Rupee ends flat on Tuesday

05 Mar 2024 Evaluate

Indian rupee ended flat on Tuesday amid negative trend in equity markets. Traders overlooked data showing that India's services activity continued to expand in February, with the HSBC Purchasing Managers' Index (PMI) for the sector coming in at 60.6. At 60.6, the February services PMI is below the flash estimate of 62.0 released on February 22. It is, however, above the key level of 50, which separates expansion in activity from contraction, for the 31st month in a row. Meanwhile, unemployment rate in India declined to 3.1 per cent in the calendar year 2023 (CY23) from 3.6 per cent in CY22 and 4.2 per cent in CY21, reflecting continued improvement in the labour markets. On the global front, the dollar was steady against the yuan on Tuesday as markets digested policy statements out of China that were short on big stimulus measures, while a rebound in Tokyo inflation seemed to take Japan a step closer to the end of negative interest rates. 

Finally, the rupee ended flat with its previous close of 82.90 on Monday. The currency touched a high and low of 82.93 and 82.88 respectively.

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