Indian rupee ended slightly lower against greenback on Tuesday as investors awaited the Federal Reserve's meeting this week for clues on the central bank's inflation outlook and the future of asset purchases. Traders were also worried as India’s retail inflation jumped to a six-month high of 6.3 per cent in May from 4.23 per cent in April. The inflation has breached the comfort level of the Reserve Bank of India (RBI). The government has asked the Reserve Bank to keep the retail inflation at 4 per cent with a margin of 2 per cent on either side. However, strong gains in domestic equity markets provided some support to the rupee, keeping the downside in check. Also, Federation of Indian Export Organisations (FIEO) stated that the order book position of exporters are healthy and the growth story will continue to be a mixed one as outbound shipments of both value added goods and raw material will contribute to push the overall exports of the country. On the global front; dollar was little changed against a basket of major currencies on Monday as traders awaited a much-anticipated U.S. Federal Reserve meeting later this week that might signal a change in the outlook for U.S. monetary policy.
Finally, the rupee ended 73.31, weaker by 2 paise from its previous close of 73.29 on Monday. The currency touched a high and low of 73.33 and 73.16 respectively.
