Indian rupee concluded weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Sentiments were dented as India's tax pie seems to have undergone a subtle change with a sharp drop in direct tax collections resulting from a disproportionate impact of the COVID-19 carnage on incomes. Adding pessimism, a report stated that under the Trump administration, US-India tensions have increased over each side’s tariff policies. It also noted that the two sides have also held concerted negotiations to address these trade frictions. On the global front; dollar fell against a basket of major currencies on Tuesday after China lifted its official yuan exchange rate to its highest level in 30 months, helping support demand for other currencies.
Finally, the rupee ended at 73.17, 15 paise weaker from its previous close of 73.02 on Monday. The currency touched a high and low of 73.27 and 73.02 respectively. The reference rate for the dollar stood at 73.01, and for Euro stood 89.41 on January 04, 2021. While the reference rate for the Yen stood at 70.87, the reference rate for the Great Britain Pound (GBP) stood at 99.86.
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