Indian rupee ended weaker against US dollar on Wednesday, on increased demand for the greenback from importers and banks. Traders were worried as ICRA stated that the fresh rupee denominated bond issuances witnessed a sharp decline of 45 per cent to Rs 1.3 lakh crore in Q1 FY2022 on a YoY and a QoQ basis (Rs 2.3 lakh crore each in Q4 FY2021 and Q1 FY2021). However, downside remained capped as Union Minister of State for Finance Pankaj Chaudhary has said that the Government is taking effective measures to curb inflation especially food inflation keeping in view of the condition of the people suffering from coronavirus pandemic situation in the country. On the global front, dollar headed towards this year's high against the euro on Wednesday and struck a five-week peak against the yen ahead of U.S. inflation data, with a strong number potentially pressuring the Federal Reserve to wind back policy support.
Finally, the rupee ended 74.44, weaker by 1 paise from its previous close of 74.43 on Tuesday. The currency touched a high and low of 74.48 and 74.37 respectively.
