Continuing previous session drubbing, Indian rupee concluded substantially weaker against dollar to a record new low on Friday on account of continued dollar demand from importers and banks. Sentiments were fragile after Russian President Vladimir Putin signaled annexation of parts of Ukraine adding to geopolitical concerns. Traders were also cautious with ASSOCHAM’s statement that India Inc is bracing itself for yet another policy rate hike by the RBI Monetary Policy Committee in the range of 35-50 basis points as the move seems unavoidable in the wake of the global monetary tightening to limit the impact of inflation. On the global front, euro and sterling slumped against the dollar on Friday after surveys showed the downturn in business activity across the euro zone and Britain deepened this month and the economies were likely entering a recession.
Finally, the rupee ended at 81.09 (Provisional), weaker by 30 paisa from its previous close of 80.79 on Thursday. The currency touched a high and low of 81.23 and 80.77 respectively.
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