Snapping previous day’s gaining streak, Indian rupee ended weaker against dollar on Wednesday with fresh dollar demand by banks and importers. Traders were worried with private report stating that the USD-INR range to shift towards 74-77 in 2HFY22 as markets begin to grapple with the widening current account deficit (from an estimated marginal surplus in 1QFY22), volatile capital flows, growth-inflation trade-offs and consequent global policy normalization. However, downfall remains capped as WPI inflation remained in double digit for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was (-) 1.81 per cent, in June 2020. Additional support also came with report that the government may extend the scheme for investment promotion 2017-20, with an aim to attract investors and promote economic growth of the country. On the global front; sterling climbed against the dollar on Wednesday as UK inflation rose more than expected to its highest in almost three years, putting the focus of the Bank of England's plan to keep its huge stimulus programme in place.
Finally, the rupee ended 74.59, weaker by 10 paise from its previous close of 74.49 on Tuesday. The currency touched a high and low of 74.65 and 74.52 respectively.
