Indian rupee ended marginally weaker against the US dollar on Wednesday as sentiments were weighed ahead of the US Federal Reserve’s interest rate decision. Traders were also concerned as Global forecasting firm Oxford Economics has said retail inflation spike in May might cause the RBI to revisit its focus on growth risks, adding that a rate hike is still unlikely this year. However, downfall remain capped as India’s merchandise exports rose by 69.35% in May 2021 as compared to same period of last year, on account of healthy growth in sectors such as engineering, petroleum products and gems and jewellery, even as trade deficit dropped to an eight-month low of $6.28 billion. Exports stood at $19 billion in May last year and at $29.85 billion in May 2019. On the global front; sterling strengthened against the euro and dollar on Wednesday after data showed British inflation unexpectedly jumped above the Bank of England's 2% target in May, sparking some concerns that policymakers may start signaling a shift in policy thinking if prices shoot up further.
Finally, the rupee ended 73.32, weaker by 1 paise from its previous close of 73.31 on Tuesday. The currency touched a high and low of 73.38 and 73.26 respectively.
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