Indian rupee witnessed mild weakness against the U.S. dollar on Thursday as investors took a cautious approach amid reports of ceasefire violations in West Asia. Iran accused the United States of violating elements of a two-week ceasefire agreement, raising concerns that tensions could escalate again and disrupt energy supplies. Besides, persistent selling from foreign institutional investors (FIIs) also weighed on rupee. FIIs were the net sellers on Wednesday’s session, offloading securities worth Rs 2,811.97 crore. However, some support came as reports indicated that banks’ have exited the bulk of their Indian rupee arbitrage trades in order to comply with limits imposed by Reserve Bank of India (RBI). RBI has capped the banks’ net open positions in the rupee in the onshore market at $100 million. The banks are required to comply with the limits by April 10. On the global front, the British pound has weakened against the dollar on Thursday, to trade under $1.34 amid rising fears that ceasefire in West Asia will not hold.
Finally, the rupee ended at 92.56 (Provisional), weakened by 2 paise from its previous close of 92.54 on Wednesday. The currency touched a high and low of 92.92 and 92.53 respectively.
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