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Rupee depreciates against dollar on Wednesday

03 Apr 2024 Evaluate

Indian rupee depreciated against the dollar on Wednesday weighed down by elevated crude oil prices in international markets and persistent foreign fund outflows. A muted trend in domestic equities also dented investor sentiments. Traders overlooked the report that World Bank revised its earlier projection of Indian economy growth by 1.2 per cent to 7.5 per cent for FY23/24. Meanwhile, government has broadly met the tax collection target of over Rs 34.37 trillion for 2023-24 on the back of robust economic activity and improved compliance. The government had raised the target for direct tax collection in FY24 (April 2023 to March 2024) to Rs 19.45 trillion, while for indirect taxes (GST+ Customs + Excise) the target was lowered to Rs 14.84 trillion in the revised estimates (RE) presented in Parliament on February 1, 2024. On the global front, dollar held near an over four-month peak on Wednesday, pinning the yen close to its lowest its decades though the heightened threat of currency intervention by Tokyo capped further declines in the Japanese currency.

Finally, the rupee ended at 83.47 (Provisional), weaker by 5 paise from its previous close of 83.42 on Tuesday. The currency touched a high and low of 83.47 and 83.36 respectively.


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