Indian rupee weakened against the US dollar on Wednesday due to an elevated crude prices in international markets and month-end dollar demand from importers. Investors overlooked report that International Monetary Fund (IMF) raised the FY24 economic growth forecast for India by 20 basis points to 6.1 per cent, citing the country’s stronger-than-expected growth momentum in the March quarter of FY23. Besides, minister of state for finance Pankaj Chaudhary said that India’s general government debt moderated to 80.9% of the Gross Domestic Product (GDP) in 2022-23 from 83.3% in 2021-22. The general government debt, which comprises the debts of the centre and states, had soared to 87.8% in FY21, the highest in at least four decades, as government expenditure rose during the Covid-19 pandemic, amid revenue slump. On the global front, Russian rouble steadied against the dollar on Wednesday, propped up by high oil prices and an upcoming, favourable tax period ahead of two OFZ bond auctions by the finance ministry.
Finally, the rupee ended at 82.01 (Provisional), weaker by 13 paise from its previous close of 81.88 on Tuesday. The currency touched a high and low of 82.03 and 81.87 respectively.
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