Indian rupee weakened against the US dollar on Wednesday amid weak domestic equities and elevated crude prices in international markets. There is also downside pressure on the local unit due to foreign fund outflows. Traders were worried as Fitch Ratings has downgraded the United States' long-term foreign currency issuer default rating to ‘AA+’ from ‘AAA’, citing 'expected fiscal deterioration over the next three years,' along with an erosion of governance and a growing general debt burden. On the global front, the dollar barely budged on Wednesday as investors shrugged off Fitch's U.S. credit rating downgrade, while the yen made up ground as traders assessed the Bank of Japan's approach to monetary policy.
Finally, the rupee ended at 82.58 (Provisional), weaker by 36 paise from its previous close of 82.22 on Tuesday. The currency touched a high and low of 82.62 and 82.37 respectively.
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