Indian rupee tumbled against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Traders failed to take support from the Organisation for Economic Cooperation and Development’s (OECD) latest report stating that India, with a growth rate of 6.6 per cent in this financial year, is among the fastest growing economies in Asia amid a global slowdown triggered by a massive energy shock due to the ongoing Russia-Ukraine conflict. On the global front, sterling ticked up on Wednesday, rising for a second day against a faltering U.S. dollar after preliminary British economic activity data beat expectations, though it still showed contraction was underway. Flash purchasing manager index (PMI) data on Wednesday showed British economic activity sticking near 21-month lows, adding to signs of recession as orders sank and employment growth slowed.
Finally, the rupee ended at 81.85 (Provisional), weaker by 18 paisa from its previous close of 81.67 on Tuesday. The currency touched a high and low of 81.93 and 81.74 respectively.
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