Rupee settles 20 paise lower on dollar demand
The rupee ended 74.52, weaker by 12 paise from its previous close of 74.40 on Wednesday
Indian rupee ended significantly lower against dollar on Thursday, on increased demand for the greenback from importers and banks. Traders were worried with report indicating that foreign institutional investors (FIIs) have been on a selling spree in India this financial year, with November seeing an outflow of over Rs 17,900 crore in the equity cash market, taking the net outflow in the segment since April to almost Rs 87,000 crore. Investor’s largely overlooked Foreign Secretary Harsh Vardhan Shringla statement that India has set an ambitious target of $400 billion of exports for the year 2021-22. Besides, healthy gains in domestic equities could not provide a cushion either. On the global front; Sterling steadied on Thursday close to a 2021 low against the dollar, supported by expectations of a rate hike in the United States, while investors awaited for a Bank of England Governor's speech later in the day.
Finally, the rupee ended 74.52, weaker by 12 paise from its previous close of 74.40 on Wednesday. The currency touched a high and low of 74.58 and 74.47 respectively.