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Rupee depreciates against dollar on Wednesday

20 Mar 2024 Evaluate

Indian rupee depreciated against the dollar on Wednesday weighed down by a strong American currency against major rivals overseas and elevated crude oil prices. Some cautiousness came in as the Reserve Bank of India’s data in the March 2024 bulletin showed that the net foreign direct investment (FDI) in India, inflows minus outflows, declined 38.4 per cent year-on-year to $15.41 billion in the first 10 months of this financial year due to an increase in the repatriation of capital. As per the data, FDI in India was $25.53 billion and outflows were $10.11 billion in April 2023-January 2024. On the global front, U.S. dollar edged up while the yen remained around its multi-month low on Wednesday ahead of the Federal Reserve policy meeting and after the Bank of Japan (BOJ) raised interest rates for the first time in 17 years. 

Finally, the rupee ended at 83.19 (Provisional), weaker by 16 paise from its previous close of 83.03 on Tuesday. The currency touched a high and low of 83.19 and 83.00 respectively.

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