Falling for the fourth consecutive day, Indian rupee ended weaker against the US dollar on Wednesday, on increased demand for the greenback from importers and banks. Concerns over US default and worries over the slowing global economy hit the traders’ sentiments. Sentiment remained cautious with rating agency Crisil’s statement that States' indebtedness will remain high this fiscal at 33 per cent, which is only a notch below the record high of 34 per cent of their gross domestic products in FY21, as tax buoyancy will be offset by higher revenue expenditure and capital outlays. Investors’ remained in sideline despite report that government has again extended the existing foreign trade policy (FTP) for another six months till March 31 next year. Earlier, it had extended the FTP (2015-20) until September 30 this year due to the COVID-19 crisis. On the global front; sterling fell to its lowest levels since January against the dollar on Wednesday, sustaining much of its losses the previous day after a selloff in equity markets hit risk sentiment and pushed the currency over 1% lower.
Finally, the rupee ended 74.15, weaker by 9 paise from its previous close of 74.06 on Tuesday. The currency touched a high and low of 74.26 and 74.08 respectively.
