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Rupee ends substantially weaker against dollar
Sep-20-2021

Indian rupee ended considerably weaker against the US dollar on Monday. Muted trend in domestic equities also dragged the local unit down. Sentiments were fragile after US Treasury Secretary Janet Yellen renewed her call for raising the country's debt ceiling to avoid a possible debt default by the world's largest economy. Yellen did not mention the timing of the default, but had earlier said that a default could come during October when the Treasury exhausts its cash reserves and extraordinary borrowing capacity under the $28.4 trillion debt limit. Additional pressure came after Reserve Bank of India's (RBI) data showed that country's foreign exchange reserves declined by $1.34 billion to $641.113 billion in the week ended September 10, 2021. In the previous week ended September 3, the reserves had surged by $8.895 billion to a life time high of $642.453 billion. On the global front, offshore Chinese yuan skidded to three-week lows on Monday, dragging lower other risk and commodity currencies, while the haven dollar rose as worries about Chinese property developer Evergrande's solvency spooked financial markets.

Finally, the rupee ended 73.74, weaker by 26 paise from its previous close of 73.48 on Friday. The currency touched a high and low of 73.82 and 73.62 respectively.

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