Rupee ended higher for third straight session against US dollar on Tuesday on dollar selling by exporters and rally in Indian equities. Traders took solace as data released by the government showed that India’s industrial production grew 29.3 per cent in May over the same period a year ago, as the impact of a favourable base continued for yet another month. Some support also came in private report stated that business activity has climbed back to the pre-second wave levels with the seventh consecutive week of surge in levels as new coronavirus infection cases decrease. However, upside remained capped amid cautions over data by government showing that India's retail inflation eased slightly to 6.26 per cent in June, but stayed above the Reserve Bank's tolerance range (2 per cent-6 per cent) for the second straight month. On the global front, sterling edged lower on Tuesday after the Bank of England scrapped pandemic-era curbs on dividend payments by banks but warned some asset prices look stretched.
Finally, the rupee ended 74.49, stronger by 9 paise from its previous close of 74.58 on Monday. The currency touched a high and low of 74.50 and 74.41 respectively.
