Indian rupee tumbled against dollar on Thursday, weighed down by foreign fund outflows and corporate dollar demand. Traders were worried as an analyst at Moody's Investors Service said that the Indian federal government’s aim to achieve a fiscal deficit target of 4.5% of gross domestic product (GDP) by 2025/26 could see some risks. The current pattern suggests that perhaps there could be some upward pressure on expenditure especially if they (government) continue with this focus on capex. On the global front, the British pound slipped on Thursday to its lowest level against the euro since September as investors awaited the Bank of England and European Central Bank policy decisions later in the day. The BoE is expected to raise its main interest rate by 50 basis points, its 10th consecutive rate rise, as it keeps up its fight against rampant inflation. There is an outside chance of a smaller quarter-point rate rise.
Finally, the rupee ended at 82.20 (Provisional), weaker by 40 paise from its previous close of 81.80 on Wednesday. The currency touched a high and low of 82.25 and 81.71 respectively.
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