Indian rupee ended weaker against dollar on Wednesday due to increased demand for American currency from importers and banks. The sentiments were under pressure as the International Monetary Fund (IMF) in its World Economic Outlook update July 2022 has cut India's growth rate by 0.8 percentage point to 7.4 per cent for fiscal year 2022, reflecting ‘mainly less favourable external conditions and more rapid policy tightening’. In April, the IMF had projected a ‘fairly robust’ growth of 8.2 per cent for India in 2022. Some concern also came amid a private report stating that the global economy is in the grips of a serious slowdown, with some key economies at high risk of recession and only sparse meaningful cooling in inflation over the next year. Renewed outflows by FIIs also put pressure on the rupee. However, the positive tone in domestic equities cushioned the downside. On the global front, the dollar edged further away from recent 20-year highs on Wednesday ahead of the U.S. Federal Reserve policy meeting, at which the central bank is expected to raise rates by another 75 basis points to tame soaring inflation.
Finally, the rupee ended at 79.91 (provisional), weaker by 13 paisa from its previous close of 79.78 on Tuesday. The currency touched a high and low of 79.92 and 79.83 respectively.
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