Indian rupee tumbled against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Investors maintained cautious approach, as global ratings agency Moody's Investors Service has given a 'negative outlook' to credit worthiness of countries globally including India, for 2023, saying high prices of food and energy would curb economic growth and raise social tensions. It said tighter financial conditions and economic scarring will push some debt burdens to unsustainable levels, while rising borrowing costs will erode debt affordability. On the global front, sterling rose against the U.S. dollar on Wednesday following UK inflation data that topped expectations and raised the chances of yet more interest rate hikes by the Bank of England (BoE).
Finally, the rupee ended at 81.25 (Provisional), weaker by 34 paisa from its previous close of 80.91 on Tuesday. The currency touched a high and low of 81.58 and 81.23 respectively.
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