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Rupee ends considerably weaker against dollar on Wednesday

22 Sep 2021 Evaluate

Indian rupee ends considerably lower against dollar on Wednesday on emergence of demand for the greenback from importers. Sentiments were negative, as the Asian Development Bank (ADB) downgraded its 2021 economic growth outlook for India -- the subregion's largest economy -- to 10 per cent from 11 per cent in 2021. However, it said the outlook for next year has improved to 7.5 per cent from 7 per cent. Besides, the Organisation for Economic Co-operation and Development (OECD) in its latest report has cut its projection of India's economic growth by 0.2 percentage points to 9.7 per cent for the current financial year (FY22). Also, investors are waiting for the end of this week's Fed meeting that may shed light on when its massive purchase of government debt will begin to ease. On the global front; risk-sensitive currencies such as the Australian dollar and Chinese yuan jumped and the safe-haven yen eased slightly on Wednesday after Chinese property giant Evergrande said it would make an upcoming yuan bond coupon payment, allaying immediate fears of a default

Finally, the rupee ended 73.87, weaker by 26 paise from its previous close of 73.61 on Tuesday. The currency touched a high and low of 73.93 and 73.66 respectively.

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