Rupee ends considerably weaker against dollar

Indian rupee ended considerably lower against dollar on Thursday on emergence of demand for the greenback from importers. Sentiments were negative as aggressive rate hikes by the Fed and central banks in Europe and Asia to control inflation that is running at multi decade highs might disrupt global economic growth. Federal Reserve's July meeting pointed to US interest rates staying higher for longer to bring down inflation back to its 2% target. Traders were also worried as former deputy chairman of the erstwhile Planning Commission Montek Singh Ahluwalia said it would be unrealistic to assume that India would record a sustained growth of 8 per cent, which is needed to become a developed nation by 2047. On the global front, pound weakened against the dollar on Thursday as soaring UK inflation would mean higher interest rates and a weaker British economy.

Finally, the rupee ended at 79.64 (Provisional), weaker by 19 paisa from its previous close of 79.45 on Wednesday. The currency touched a high and low of 79.71 and 79.60 respectively.