Rupee ends considerably lower greenback

Indian rupee ended considerably lower against the US dollar on Friday, on increased demand for the greenback from importers and banks. Traders seem to have overlooked Chief Economic Advisor K V Subramanian’s statement that headline inflation will come down under the 6 percent mark in July itself but will stay at an elevated level of over 5 percent for some time. Such an outcome will get the price rise back into the upper-end of the target band given to RBI, he said, adding that consumer price inflation had breached the mark for three consecutive quarters last fiscal because of supply side issues like challenges in movement of goods. On the global front, dollar languished near a one-month low on Friday and was set for its worst weekly performance since May as dovish remarks by the U.S. Federal Reserve together with underwhelming economic data took the steam out of a month-long rally.

Finally, the rupee ended 74.42, weaker by 13 paise from its previous close of 74.29 on Thursday. The currency touched a high and low of 74.44 and 74.27 respectively.