Indian rupee concluded weaker on Tuesday amid strength in dollar and elevated crude oil prices. Sentiments were pessimistic with Fitch Ratings’ statement that higher fiscal deficits and lack of clarity on consolidation plans in the Budget add risks to its projection of lowering of India's debt-to-gross domestic product (GDP) ratio. Traders were also worried as private report stated that E-way bill generation for goods transportation under the goods and services tax (GST) system stood at 6.88 crore in January, down 4% from the previous month, reflecting some slack in trade due to the spread of the Omicron variant of Covid. However, losses remain capped with Union Finance Minister Nirmala Sitharaman’s statement that India will be the fastest-growing economy this year and by the next year, the country will be the fastest-growing economy among the large economies. On the global front, euro weakened for a second consecutive day on Tuesday after European Central Bank President Christine Lagarde said there is no need for big monetary policy tightening in the euro zone.
Finally, the rupee ended at 74.74 (Provisional), weaker by 5 paise from its previous close of 74.69 on Friday. The currency touched a high and low of 74.80 and 74.57 respectively.
