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Rupee tumbles against dollar on Wednesday

12 Oct 2022 Evaluate

Indian rupee tumbled against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Investors maintained cautious approach after the International Monetary Fund (IMF) in its annual World Economic Outlook report has cut its projection of India’s economic growth in 2022 to 6.8 per cent - a 0.6 percentage point downgrade since the July forecast, reflecting a weaker-than-expected outturn in the second quarter and more subdued external demand. Traders took note of report that Treasury Secretary Janet Yellen has announced that she will travel to India next month to attend the ninth edition of the US-India Economic and Financial Partnership meeting, as she pitched for strong ties between the two nations to address the world’s most important economic challenges. On the global front, British pound rebounded off a two-week low on Wednesday as investors cast doubt on the Bank of England's commitment to ending emergency bond buys as scheduled, amid reports signalling the BoE could extend purchases should market conditions warrant.

Finally, the rupee ended at 82.33 (Provisional), weaker by 12 paisa from its previous close of 82.21 on Tuesday. The currency touched a high and low of 82.37 and 82.15 respectively.

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