Rupee ended substantially weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Sentiments got hurt as Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai stated that bilateral trade between Afghanistan and India will get impacted significantly in these uncertain times. He said domestic exporters should follow caution looking into the political development in Afghanistan, particularly with regard to payments, for which adequate credit insurance may be availed by them. Some concern also came as foreign portfolio investors (FPIs) sold Rs 7,000 crore worth of equities in the secondary markets in the June quarter. The holding of these investors (including ADR and GDR) in the BSE-200 index declined to 23.9 per cent from 24.4 per cent in March 2021. On the global front; pound hits its lowest level in three weeks against the dollar on Tuesday as weakening risk sentiment weighed on global stock markets, hitting risk-correlated currencies.
Finally, the rupee ended 74.35, weaker by 11 paise from its previous close of 74.24 on Friday. The currency touched a high and low of 74.36 and 74.21 respectively.
