Indian rupee ended lower against US dollar on Tuesday on account of sustained demand for dollar from banks and importers. Sentiments remain dented with CARE Ratings’ report that India is staring at a rise in food inflation soon, as weak monsoon rainfall hits the country’s food output. Besides, subdued sentiments in domestic equity markets weighed on the domestic currency and strengthening of the US dollar vis-a-vis other currencies overseas also kept pressure on the Indian rupee. However downside remain capped with State Bank of India’s (SBI) Ecowrap report stating that India has benefited from US-China trade war by exporting more items to US and China. On the global front, euro hovered on Tuesday around the 26-month low it reached last week against the dollar as investors awaited to see whether the Federal Reserve would signal the start of an interest rate-cutting cycle.
Finally, the rupee ended at 68.85, 10 paise weaker from its previous close of 68.75 on Monday. The currency touched a high and low of 68.88 and 68.67 respectively. The reference rate for the dollar stood at 68.90 and for Euro stood at 76.65 on July 29, 2019. While the reference rate for the Yen stood at 63.42, the reference rate for the Great Britain Pound (GBP) stood at 85.21.
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