Rupee snaps gaining streak; ends weaker on Friday
The rupee ended 74.15, weaker by 25 paise from its previous close of 73.90 on Thursday
Snapping its five-day gaining streak, Indian rupee depreciated against dollar on Friday due to demand for American currency from banks and importers. Besides, volatility in local equity market also hit the rupee sentiment. Sentiments were fragile as wholesale inflation across the country rose to 13.56 per cent in December. The high rate of inflation in December 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products, textile and paper and paper products etc as compared to the corresponding month of the previous year. Cautiousness also came with United Nations’ report that India is forecast to grow at 6.5 per cent in fiscal year 2022, a decline from the 8.4 per cent GDP estimate in previous financial year, and while the country's economic recovery is on a solid path amid rapid vaccination progress, coal shortages and high oil prices could put the brakes on economic activity in the near term. On the global front, dollar fell for a fourth consecutive day on Friday to its lowest in more than two months as investors took the view that most of the recent hawkishness from the U.S. central bank has already been priced in.
Finally, the rupee ended 74.15, weaker by 25 paise from its previous close of 73.90 on Thursday. The currency touched a high and low of 74.21 and 74.05 respectively.