Rupee ended substantially weaker against dollar on Wednesday on account of continued dollar demand from importers and banks. Besides, selloff in domestic equity markets also weighed on the rupee sentiment. Traders were concerned from rising inflationary pressure globally and increasing apprehension among investors about Federal Reserve's soft monetary stance due to sharp rise in CPI inflation. Adding more pessimism, private report stated that India’s second wave of virus cases will hit the economy by prompting consumers to save rather than spend, unlike last year’s contraction that was driven mainly by supply disruptions. On the global front; pound traded flat to the dollar and hit its lowest in more than a week against a broadly stronger euro on Wednesday, after data showed a doubling of consumer price inflation in Britain in April.
Finally, the rupee ended 73.18, weaker by 13 paise from its previous close of 73.05 on Tuesday. The currency touched a high and low of 73.18 and 72.93 respectively.
