Indian rupee ended weaker against dollar on Wednesday with fresh dollar demand by banks and importers. Sentiments were under pressure amid fears that authorities may tighten restrictions further as covid-19 cases continue to surge. Also, weakness in domestic equity markets put pressure on Indian currency. Traders overlooked Minister of State for Finance and Corporate Affairs Anurag Thakur’s statement that increased economic activities have resulted in higher GST collection which stood above Rs 1 lakh crore for five months in a row since October 2020. On the global front, dollar hit a four-month high on Wednesday as concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes, and escalating tensions between the West and China sapped risk appetite.
Finally, the rupee ended 72.55, weaker by 12 paise from its previous close of 72.43 on Tuesday. The currency touched a high and low of 72.69 and 72.51 respectively. The reference rate for the dollar stood at 72.29, and for Euro stood 86.21 on March 23, 2021. While the reference rate for the Yen stood at 66.48, the reference rate for the Great Britain Pound (GBP) stood at 100.00.
