Continuing previous session drubbing, Indian rupee ended significantly weaker against dollar on emergence of demand for the greenback from importers amid muted trend in domestic equities, consistent foreign fund outflows and risk-averse sentiments weighed on the local unit. Nervousness ahead of the US Fed outcome and increasing warning calls by the World Health Organisation (WHO) against the Omicron coronavirus variant, which is now spreading faster than the Delta variant, is keeping investors on the sidelines. Sentiments were also fragile as the Asian Development Bank (ADB) for the second time in three months scaled down India’s growth estimate for the fiscal year ending March 2022 due to supply chain issue of industries. On the global front, dollar held firm on Wednesday, with currency markets quiet as investors waited to see if the U.S. Federal Reserve would reinforce market expectations for rate hikes next year.
Finally, the rupee ended 76.32 (Provisional), weaker by 44 paise from its previous close of 75.88 on Tuesday. The currency touched a high and low of 76.32 and 76.02 respectively.
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