Indian Rupee ended weaker against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Sentiments were fragile as Revenue Secretary Tarun Bajaj’s statement that excise duty cut on diesel and petrol prices will burden the government's coffers, but it has no plans to increase the borrowing immediately. Continuous foreign fund outflow also weighted down on the domestic sentiments. Traders failed to take solace with Union Commerce and Industry Minister Piyush Goyal statement that the country is poised to achieve a services export target of $1 trillion by the year 2030. Services trade surplus was $89 billion in FY 2020-21 and it has been the largest foreign direct investment (FDI) recipient (53 percent of FDI inflows 2000-2021). On the global front; dollar nudged up against major peers on Wednesday after weakening in the past three days with investors taking little risk ahead of U.S. inflation data which could shine some light on how fast the Federal Reserve might raise interest rates.
Finally, the rupee ended 74.38, weaker by 33 paise from its previous close of 74.05 on Tuesday. The currency touched a high and low of 74.42 and 74.06 respectively.
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