Continuing prevision session drubbing; Indian rupee ended considerably weaker against dollar on Tuesday, on emergence of demand for the greenback from importers. Also, significant losses in domestic equity markets put pressure on domestic currency. Investors were closely monitoring the developments at troubled Chinese developer Evergrande. Concerns that an energy crunch in China could hit growth in the world's number two economy were adding to the downbeat mood. Sentiments were fragile as finance ministry said the government will borrow Rs 5.03 trillion in the second half of the current fiscal to fund the revenue gap for reviving the pandemic-hit economy. Meanwhile, World Bank said that East Asia and Pacific region's recovery has been undermined by the spread of the COVID-19 Delta variant, which is likely slowing economic growth and increasing inequality in the region. On the global front; sterling fell versus a strengthening dollar on Tuesday after U.S. treasury yields jumped to the highest in almost three months following hawkish U.S. Federal Reserve remarks.
Finally, the rupee ended 74.06, weaker by 23 paise from its previous close of 73.83 on Monday. The currency touched a high and low of 74.12 and 73.73 respectively.
