Indian rupee ended weaker against the US dollar on Thursday, on increased demand for the greenback from importers and banks. Sentiments were downbeat as inflation in the US hit a 30-year high, raising concerns of an earlier-than-expected hike in interest rates in the world's largest economy. Also, continuous foreign fund outflows subdued traders’ sentiments. Foreign institutional investors (FIIs) were stood as net sellers in the capital market, as they offloaded shares worth Rs 469.50 crore on Wednesday. They have sold equities worth Rs 5,515 crore so far this month. Traders were also cautious, after claiming that monetary measures taken by the RBI to ensure ample liquidity for all sectors ravaged by the pandemic have been fruitful, governor Shaktikanta Das said monetary policy normalisation or unwinding is not as simple as rolling back a carpet but a much more complex and long-term process. On the global front; dollar rose to 16-month highs against the euro and other currencies on Thursday, and the yen fell back towards multi-year lows, after the hottest U.S. inflation reading in a generation encouraged bets on interest rate hikes.
Finally, the rupee ended 74.51, weaker by 17 paise from its previous close of 74.34 on Wednesday. The currency touched a high and low of 74.59 and 74.44 respectively.