Indian rupee depreciated against the US dollar on Monday amid a steep fall in domestic equity markets and unabated outflow of foreign capital. Traders overlooked report that India’s services sector witnessed a faster growth in the month of December, as demand buoyancy continued to drive new business inflows higher, which in turn supported output growth and prompted firms to recruit additional workers. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 59.3 in December from 58.4 in November. Traders were concerned after India’s foreign exchange reserves continue to decline, extending downhill journey for three months now. data from the Reserve Bank of India (RBI) showed, in the week that ended December 27, the country’s foreign exchange kitty declined by $4.112 billion to $640.279 billion. On the global front, dollar slumped on Monday after a report said President-elect Donald Trump was mulling tariffs that would only be applied to critical imports, potentially a relief for countries that were expecting broader levies.
Finally, the rupee ended at 85.83 (Provisional), depreciated by 4 paise from its previous close of 85.79 on Friday. The currency touched a high and low of 85.84 and 85.68 respectively.
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