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Rupee ends weak on dollar demand from importers
Aug-08-2022

Indian rupee depreciated against dollar on Monday due to demand for American currency from banks and importers. Traders took note of Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the ‘unacceptably high’ inflation trending around 7 per cent mark led the RBI to hike rates by an aggressive 0.50 per cent. Meanwhile, Governor Shaktikanta Das has said India is unlikely to be impacted by any adverse developments in Taiwan. He said Taiwan accounts for only 0.7 per cent of India's overall trade. There are tensions between Taiwan and China, triggered by US House Speaker Nancy Pelosi's visit to the island nation which Beijing views as a breakaway province. A belligerent China has tested missiles and sent 100 warplanes and 10 warships for live-fire military drills in the close vicinity of Taiwan. On the global front, dollar fell on Monday, as currency markets pulled back on their initial reaction and waited for Wednesday's inflation data to give more clues about the Federal Reserve's next steps.

Finally, the rupee ended at 79.63 (provisional), weaker by 39 paisa from its previous close of 79.24 on Friday. The currency touched a high and low of 79.65 and 78.45 respectively.

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