Snapping previous day’s gaining streak, Indian rupee ended weaker against dollar on Friday with fresh dollar demand by banks and importers. Traders were worried as FICCI’s quarterly survey showed that the Indian economy is expected to expand 7% in fiscal 2022/23, slower than a previous estimate of 7.4% and the central bank's 7.2% projection. The survey said the war in Ukraine is likely to keep inflation high and dent consumer demand. Also, the Asian Development Bank has slashed its growth forecast for India to 7.2 per cent for FY23 from 7.5 per cent estimated earlier citing higher than anticipated inflation since April and subsequent monetary tightening by the central bank. Meanwhile, Commerce Secretary BVR Subrahmanyam states that the negotiations for the India-UK free trade agreement will be concluded by August 31 and ready for signing by Diwali in October. On the global front, euro continued its retreat on Friday from a more-than-two-week high as disappointing activity data from France and Germany pushed the single currency lower, a day after the European Central Bank raised interest rates for the first time since 2011.
Finally, the rupee ended at 79.90 (provisional), weaker by 5 paisa from its previous close of 79.85 on Thursday. The currency touched a high and low of 79.92 and 79.86 respectively.
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