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Rupee ends flat on Tuesday

17 Dec 2024 Evaluate

Indian rupee ended flat on Tuesday weighed down by disappointing trade balance data and weak domestic markets. Traders were worried with data released by the commerce department showing that India’s trade deficit reached a record high of $37.8 billion in November, amid a surge in merchandise imports, mainly driven by a 4.3-time jump in inbound shipments of gold. Imports increased by 27% to a record of almost $70 billion during the month. On the other hand, exports contracted 4.8% to a 25-month low of $32.1 billion in November. The contraction came in a month after witnessing robust 17% Y-o-Y growth in October, which was due to inventory-building by the West ahead of the Christmas season. On the global front, dollar held firm on Tuesday ahead of an expected interest rate cut in the United States, as traders grow increasingly convinced the Federal Reserve will lower borrowing rates only gradually next year.

Finally, the rupee ended flat with its previous close of 84.91 on Monday. The currency touched a high and low of 84.93 and 84.88 respectively.

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