Reversing previous session gains, Indian rupee ended lower against dollar on Tuesday, on increased demand for the greenback from importers and banks. Sentiments remained down-beat with industry body CII stating that the current agitation by farmers has led to supply chain disruptions, which will impact the economy in the coming days and may impinge upon the ongoing recovery from the economic contraction due to COVID-19. Traders failed to get any sense of relief as Retail inflation based on the Consumer Price Index (CPI) eased to 6.93 per cent in November on the back of softer food prices, though it remained above the comfort level of the Reserve Bank of India (RBI). On the global front, pound stabilised on Tuesday after Monday’s sharp rebound as market participants grew more optimistic about the chances of a Brexit deal, but implied volatility gauges pointed to further price swings ahead as the December 31 Brexit deadline approaches.
Finally, the rupee ended at 73.63, 8 paise weaker from its previous close of 73.55 on Monday. The currency touched a high and low of 73.67 and 73.59 respectively. The reference rate for the dollar stood at 73.54, and for Euro stood 89.30 on December 14, 2020. While the reference rate for the Yen stood at 70.70, the reference rate for the Great Britain Pound (GBP) stood at 98.00.
