Indian rupee depreciated considerably against dollar on Tuesday, on account of sustained dollar demand from importers and banks. Traders were worried as the World Bank said that the debt burden of the world's low-income countries rose 12% to a record $860 billion in 2020 as countries responded to the COVID-19 crisis with massive fiscal, monetary, and financial stimulus packages. Some concerns also came amid private report stating that the Reserve Bank is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022. On the global front, sterling eased from a two-week high against the dollar on Tuesday as UK jobs data came in largely in line with forecasts, keeping expectations for future rate rises from the Bank of England intact.
Finally, the rupee ended 75.52, weaker by 16 paise from its previous close of 75.36 on Monday. The currency touched a high and low of 75.66 and 75.16 respectively.
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