Rupee declines for third straight session

Registering its third straight session of losses, Indian rupee tumbled against dollar on Thursday, on account of sustained dollar demand from importers and banks and selling pressure in domestic equities. Sentiments remained fragile as Federal Reserve officials signaled that they were on track to raise interest rates in March, given that inflation has been running far above policymakers’ target and that labor market data suggests employees are in short supply. Sentiments were also down beat as the International Monetary Fund (IMF) in its latest update of World Economic Outlook has cut India's economic growth forecast to 9 per cent for the current fiscal year ending March 31 (FY22) from its earlier projection of a 9.5 per cent GDP growth, on concerns over the impact of a spread of new variant of coronavirus on business activity and mobility. On the global front, dollar climbed to multi-week highs against other major currencies on Thursday, bolstered by the prospects for faster and larger interest rate hikes in the months ahead.

Finally, the rupee ended 75.09 (Provisional), weaker by 31 paise from its previous close of 74.78 on Tuesday. The currency touched a high and low of 75.31 and 75.07 respectively.