Indian rupee weakened against the U.S. dollar on Monday as investors were cautious following renewed tensions between United States and Iran. Over the weekend, the United States and Iran exchanged fires near the Strait of Hormuz raising concerns over fragile cease fire. Besides, traders over looked the Crisil ratings’ report saying the profitability impact of the recent West Asia conflict on India Inc is expected to be far lower than initially projected if the US-Iran ceasefire remains intact and energy supplies continue to normalise. On the global front, the British pound has strengthened against the U.S. dollar on Monday after Andy Burnham, the sole candidate to succeed Keir Starmer, has vowed to significantly devolve fiscal powers from Westminster to local authorities if elected, while maintaining fiscal discipline
Finally, the rupee ended at 94.50 (Provisional), weakened by 5 paise from its previous close of 94.45 on Thursday. The currency touched a high and low of 94.56 and 94.25 respectively.
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