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Rupee ends lower against dollar on Wednesday

21 Aug 2024 Evaluate

Indian rupee ended lower against the U.S. dollar on Wednesday amid unabated outflow of foreign capital and volatile domestic equity markets. Traders took a note of Reserve Bank of India Governor Shaktikanta Das’ statement that India’s inflation must show signs of settling around the central bank’s target of 4 percent on a sustainable basis before a rate cut can be considered. The inflation rate in July eased below the RBI’s target for the first time since 2019, but the central bank expects it to climb back again from September.  On the global front, pound steadied on Wednesday near the one-year high it touched against the dollar the previous day, with the U.S. currency under pressure from rising expectations of Federal Reserve interest rate cuts.

Finally, the rupee ended at 83.92 (Provisional), weaker by 15 paise from its previous close of 83.77 on Tuesday. The currency touched a high and low of 83.94 and 83.79 respectively.

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