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Indian rupee depreciates against US dollar on Monday

30 Dec 2024 Evaluate

Indian rupee depreciated against the US dollar on Monday amid dollar demand from importers, foreign fund outflows and a muted trend in domestic equities dented investor sentiments. Traders were concerned as data released by the Reserve Bank of India (RBI) showed India’s foreign exchange reserves fell by $8.4 billion to $644 billion in the week ended December 20. Traders overlooked report that Reserve Bank of India (RBI) latest data has showed that India's current account deficit (CAD) moderated marginally to $11.2 billion or 1.2 per cent of Gross Domestic Product (GDP) year-on-year in the July-September quarter (Q2) of 2024-25. The CAD, an indicator of the country's external payment scenario, was $11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24. On the global front, ringgit held firm to close marginally higher against the US dollar despite a strong greenback underpinned by elevated US bond yields.

Finally, the rupee ended at 85.52 (Provisional), depreciated by 3 paise from its previous close of 85.49 on Friday. The currency touched a high and low of 85.59 and 85.43 respectively.

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