Continuing previous session drubbing, Indian rupee concluded substantially weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Traders were worried despite private report stating that the India's retail inflation likely slowed to three-month low in July, bringing it back within the central bank's target range, on falling food prices and an easing of supply chain disruptions. There's a material drop in edible oil and palm oil prices after tariff reductions and global oil price volatility has eased as well. Meanwhile, Reserve Bank issued draft guidelines to further liberalise regulatory framework governing overseas investments with a view to promote ease of doing business. RBI has placed on its website two documents -- draft Foreign Exchange Management (Non-debt Instruments - Overseas Investment) Rules, 2021 and draft Foreign Exchange Management (Overseas Investment) Regulations, 2021. On the global front, dollar hit a four-month high versus the euro on Tuesday after upbeat U.S. jobs data bolstered expectations that the Federal Reserve could soon start tapering its massive bond-buying program.
Finally, the rupee ended 74.43, weaker by 17 paise from its previous close of 74.26 on Monday. The currency touched a high and low of 74.46 and 74.33 respectively.
