Indian rupee tumbled against dollar on Thursday, weighed down by a muted trend in domestic equities and foreign fund outflows. Sentiments turned pessimistic with IMF managing director Gita Gopinath’s statement that the global economy is facing a unique situation due to unprecedented level of high inflation and that is causing tension between monetary and fiscal policies. Traders overlooked a private report stated that India is likely to become a $26-trillion economy in 100th year of its Independence in 2047 with per capita GDP growing six times from current level to over $15,000 during the period. On the global front, dollar slipped on Thursday after a raft of data showed the U.S. economy is losing momentum, while the yen rebounded as traders continued to bet the Bank of Japan will shift away from ultra-loose monetary policy. U.S. data released on Wednesday showed retail sales fell by the most in a year in December and manufacturing output suffered its biggest drop in nearly two years, stoking fears that the world's largest economy is headed for a recession.
Finally, the rupee ended at 81.37 (Provisional), weaker by 7 paise from its previous close of 81.30 on Wednesday. The currency touched a high and low of 81.42 and 81.22 respectively.
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