Rupee ends lower against greenback

The rupee extended its losses on Thursday and ended lower against the US dollar weighed down by a negative trend in domestic equities and unabated foreign fund outflows. FIIs have been net sellers for eight straight months, and have dumped equities worth nearly Rs 38,000 crore in the month of May so far. In-line with other global central banks, the RBI, too, has turned hawkish and is mulling steep rate hikes also weighed investors’ sentiments. According to the minutes of the surprise meeting held on May 4, most members of the monetary policy committee (MPC) argued for front-loading interest rate hikes in view of rapidly rising inflation during the off-cycle monetary policy review earlier this month. However, downfall remain capped with Chief Economic Adviser (CEA) V Anantha Nageswaran’s statement that amid global uncertainties caused by the ongoing Russia-Ukraine war, India is still better placed among the large economies because of an improved financial system and a robust corporate health. On the global front, euro rose on Thursday as investors priced in the chance of an aggressive near-term tightening path by the European Central Bank.

Finally, the rupee ended at 77.65 (Provisional), weaker by 3 paise from its previous close of 77.62 on Wednesday. The currency touched a high and low of 77.76 and 77.63 respectively.