Indian rupee ends tad lower against dollar

Indian rupee ended weaker against the US dollar on Thursday, on increased demand for the greenback from importers and banks. Traders seem to have overlooked report that United Nations Conference on Trade and Development (UNCTAD) has pegged India's economic growth rate to hit a four-year high of 7.2 per cent for 2021 against a contraction of 7 per cent in 2020. At this rate, India would be the fastest growing economy after China, which is projected to grow by 8.3 per cent. Meanwhile, defence Minister Rajnath Singh said the trust between the government and the industry has gone up following the scrapping of the retrospective taxation regime and the Centre is open to new ideas to further boost the country’s economic growth. On the global front; sterling rose against the euro and fell versus the dollar on Thursday as traders assessed the Bank of England's next move after data showed British inflation hit a more than nine-year high in August, fuelling expectation of a rate increase.

Finally, the rupee ended 73.52, weaker by 2 paise from its previous close of 73.50 on Wednesday. The currency touched a high and low of 73.52 and 73.34 respectively.