Indian rupee ended considerably lower on Friday due to mild dollar demand from banks and importers. Sentiments were fragile after the Reserve Bank of India left key rates unchanged and reiterated the need to unwind pandemic-era stimulus only gradually to aid a nascent economic recovery. The RBI's dovishness dashed expectations of investors hoping it would hint at moving towards policy normalisation like some global central banks, with the rupee shedding 0.4% to hit its lowest since late-April. Traders were also worried as Fitch Ratings in its latest report further lowered India's Gross domestic product (GDP) growth forecast for the fiscal year ending March 2022 (FY22) to 8.7 percent from 10 percent projected in June as a result of the severe second virus wave. On the global front; dollar edged higher versus major peers on Friday but within a narrow range as traders awaited clues from the U.S. non-farm payrolls report on the pace of Federal Reserve policy normalization.
Finally, the rupee ended 74.99, weaker by 20 paise from its previous close of 74.79 on Thursday. The currency touched a high and low of 75.16 and 74.91 respectively.
