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Indian rupee depreciates against US dollar

27 May 2024 Evaluate

Indian rupee depreciated against the US dollar on Monday mirroring the benchmark indices that erased their gains and ended the day off their record-high levels. Some concern came as the data showed that India has recorded a trade deficit, the difference between imports and exports, with nine of its top 10 trading partners, including China, Russia, Singapore, and Korea, in 2023-24. The data also showed that the deficit with China, Russia, Korea, and Hong Kong increased in the last fiscal compared to 2022-23, while the trade gap with the UAE, Saudi Arabia, Russia, Indonesia, and Iraq narrowed. On the global front, the dollar held steady on Monday, but was set for its first monthly loss this year, as investors were focused on U.S., European and Japanese inflation data to guide the global interest rate outlook.

Finally, the rupee ended at 83.13 (Provisional), weaker by 3 paise from its previous close of 83.10 on Friday. The currency touched a high and low of 83.14 and 83.05 respectively.

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