Mumbai: The rupee lost its early gains on the backdrop of higher borrowings in the next fiscal and the rupee on Tuesday closed 17 paise lower at 74.82 (provisional) against the dollar at the interbank forex market. Traders said that Finance Minister Nirmala Sitharaman on Tuesday said that the government will raise about 11.6 lakh crore rupees from the market in the financial year 2022-23 to meet its expenditure requirements.
After his statement, investors took a cautious approach. Apart from this, the government said that the fiscal deficit in the year 2021-22 will be 6.9 percent of the gross domestic product (GDP) and in the year 2022-23 this deficit will be 6.4 percent. The rupee opened at 74.53 against the dollar in the interbank foreign exchange market and saw an upper level of 74.41 and a low of 74.87 during the day’s trade. At the end of trading, the rupee depreciated by 17 paise at 74.82 (provisional) against the US currency, against the previous closing price of Rs 74.65 per dollar.
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The dollar index, reflecting the US dollar’s position against the six major currencies, declined 0.19 per cent to 96.35. Global oil benchmark Brent crude futures fell 0.94 per cent to $88.42 per barrel. Foreign institutional investors sold a total of Rs 3,624.48 crore on Monday, according to provisional stock market data. The 30-share Sensex of the Bombay Stock Exchange closed at 58,862.57 points, up 848.40 points. (agency)