Indian rupee concluded substantially weaker against dollar on Tuesday, on account of sustained dollar demand from importers and banks. Sentiments were fragile as government has decided not to impose anti-dumping on imports of certain copper products, used in the electrical industry, from China, Thailand, Korea and three other countries. Traders were worried despite private report stated that the business resumption activity continued to increase for the sixth straight week after the second wave-induced lockdowns started getting lifted. It noted that the Nomura India Business Resumption Index (NIBRI) rose up to 91.3 for the week ended June 4, from 86.3 the previous week, and is only 8.7 percentage points (pp) below pre-pandemic levels and 3.6 pp below pre-second wave level. On the global front, dollar fell on Tuesday as traders wagered on a patchy U.S. job market holding interest rates low while the rest of the world reopens.
Finally, the rupee ended 74.55, weaker by 24 paise from its previous close of 74.31 on Monday. The currency touched a high and low of 74.62 and 74.25 respectively.
