Indian rupee ended weaker against the US dollar on Tuesday, on increased demand for the greenback from importers and banks. Traders remain concerned as industrial production, measured on the basis of Index of Industrial Production (IIP), declined by 8 percent in August. The IIP had contracted by 1.4 percent in August 2019. Adding pessimism, amid continuing rise in food prices, the inflation based on the Consumer Price Index (CPI) jumped to an eight-month high of 7.34 per cent in September. The retail inflation had stood at 6.69 percent in August, while it was 3.99 per cent in September last year. On the global front; dollar fell about 0.5% on Tuesday after reports that China has halted coal imports from the country as their relations deteriorate while the U.S. dollar recovered from a three-week low plumbed the day before.
Finally, the rupee ended at 73.35, 7 paise weaker from its previous close of 73.28 on Monday. The currency touched a high and low of 73.41 and 73.32 respectively. The reference rate for the dollar stood at 73.13 and for Euro stood 86.43 on October 12, 2020. While the reference rate for the Yen stood at 69.34, the reference rate for the Great Britain Pound (GBP) stood at 95.44.
