Continuing previous session losses, Indian rupee ended substantially weaker against dollar on Wednesday as spike in global crude oil prices re-ignited concerns over imported inflation and a drop in other Asian currencies weighed on investor sentiment. Also, losses in Indian equity markets also dented traders’ mood. Sentiments were fragile as International Monetary Fund expects global economic growth in 2021 to fall slightly below its July forecast of 6%, citing risks associated with debt, inflation and divergent economic trends in the wake of the COVID-19 pandemic. Additional pessimism also came after Bombay Chamber of Commerce and Industry's survey found that an overwhelming number of exporters are worried about competitiveness as global trade picks up pace after the ravages of the pandemic. On the global front; dollar rose on Wednesday amid nervousness that surging energy prices could spur inflation and interest rate hikes, and as traders awaited U.S. jobs data for clues on the timing of Federal Reserve policy tightening.
Finally, the rupee ended 74.98, weaker by 54 paise from its previous close of 74.44 on Tuesday. The currency touched a high and low of 74.99 and 74.54 respectively.
