Indian rupee tumbled against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Investors maintained cautious approach as a private report stated that market borrowing cost for the states remained high with the average yield hitting 7.83 per cent at the auctions held on Tuesday, which is a paltry 1 basis points lower than the last auction of state securities. Besides, another private report stated that India's fast-depleting foreign exchange reserves are likely to drop more than was predicted just a month ago by end-2022 as the Reserve Bank of India will continue to shield the rupee from the dollar's strength. On the global front, Sterling edged up against the dollar on Wednesday as markets braced for policy decisions from the U.S. Federal Reserve and Bank of England on benchmark interest rates aimed at curbing soaring inflation.
Finally, the rupee ended at 82.78 (Provisional), weaker by 19 paisa from its previous close of 82.59 on Tuesday. The currency touched a high and low of 82.81 and 82.62 respectively.
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