Indian rupee weakened on Tuesday, marking the fourth straight session of losses, tracking a strong American currency in the overseas market and significant foreign fund outflows. Traders remained cautious as flagging risks of disruptive spillovers from geopolitical hostilities, an RBI article said India faces these challenges from a position of strength built on broadened vaccine coverage, financial sector resilience and robust exports. Some anxiety also came as the International Monetary Fund (IMF) warned that the debt piled on by the private sector during the coronavirus pandemic could lower growth for emerging markets by 1.3 percent over three years. On the global front, the dollar rose on Tuesday to a fresh 20-year high against the Japanese yen and tested a two-year peak against the euro, supported by high U.S. Treasury yields.
Finally, the rupee ended at 76.52 (Provisional), weaker by 23 paise from its previous close of 76.29 on Monday. The currency touched a high and low of 76.55 and 76.25 respectively.
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