Continuing previous session losses, Indian rupee ended weaker against the US dollar on Wednesday, on increased demand for the greenback from importers and banks. Sentiments were fragile as Fitch Ratings said India continues to lag way behind in COVID vaccination, and the negative outlook on sovereign rating signifies the rising debt-to-GDP ratio. In April 2021, Fitch affirmed India's sovereign rating at 'BBB-' with a negative outlook. The outlook was changed to 'negative' from 'stable' in June last year on grounds that the pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public-debt burden. Traders were also worried on concern that the delta coronavirus variant is slowing the economic recovery from the pandemic. On the global front; dollar rose to a one-week peak against peers on Wednesday, buoyed by higher Treasury yields and a weaker euro a day ahead of a European Central Bank policy decision.
Finally, the rupee ended 73.60, weaker by 18 paise from its previous close of 73.42 on Tuesday. The currency touched a high and low of 73.70 and 73.48 respectively.
