Indian rupee traded in a very narrow range and ended almost unchanged against the US dollar on Wednesday, as the support from easing crude oil prices was negated by strong dollar demand. A muted trend in domestic equities and significant foreign fund outflows dented investors' sentiments. However, traders took some support with government's chief economic adviser V. Anantha Nageswaran’s statement that India does not see any nasty upside to inflation at the moment, and expects its economy to expand by more than 7 per cent in the current fiscal year. On the global front, the dollar edged up on Wednesday, recouping some of the losses stemming from renewed bets on Federal Reserve rate cuts this year, while the yen weakened for a third day, keeping investors wary of the risk of intervention from Tokyo.
Finally, the rupee ended at 83.52 (Provisional), weaker by 1 paisa from its previous close of 83.51 on Tuesday. The currency touched a high and low of 83.52 and 83.49 respectively.
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