Extending weakness for the second day, Indian rupee ended weaker against dollar on Tuesday, as good demand for the greenback from importers and weakness in domestic shares. Traders remain concerned with a monthly survey showing that the manufacturing sector activity in September remained unchanged amid subdued demand conditions both domestically as well as externally. The IHS Markit India Manufacturing PMI was at 51.4 in September, unchanged from August and thereby posting its joint-lowest reading since May 2018. Separately, a survey of World Economic Forum business leaders showed that the possibility of a fiscal crisis is the biggest risk to doing business globally. On the global front, dollar held at a 29-month high on Tuesday as renewed evidence of strength in the U.S. economy encouraged investors to buy the greenback.
Finally, the rupee ended at 71.07, 20 paise weaker from its previous close of 70.87 on Monday. The currency touched a high and low of 71.16 and 70.75 respectively. The reference rate for the dollar stood at 70.68 and for Euro stood at 77.32 on September 30, 2019. While the reference rate for the Yen stood at 65.55, the reference rate for the Great Britain Pound (GBP) stood at 86.92.
