Rupee ends considerably weaker against dollar

Indian rupee tumbled against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Significant foreign fund outflows, concerns about aggressive interest rate hikes by global central banks and potential global recession fears have impacted traders’ sentiments. Foreign Institutional Investors (FIIs) were stood net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,823.96 crore, exchange data showed. Traders took note of private report that Interest rate hikes in the United States and the resultant pressure on the rupee is likely to give the Reserve Bank of India (RBI) reason to deliver a 50-basis-point rate hike on Friday even as it tries to protect a recovery in growth. The RBI’s monetary policy committee (MPC) has already hiked the key policy rate by 140 bps since May to 5.4%. On the global front, sterling languished near all-time lows on Wednesday on fears over Britain's radical tax cut plans.

Finally, the rupee ended at 81.93 (Provisional), stronger by 40 paisa from its previous close of 81.53 on Tuesday. The currency touched a high and low of 82.02 and 81.81 respectively.