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Indian rupee ends lower against dollar on Tuesday

07 Jun 2022 Evaluate

Indian rupee ended weaker against the US dollar on Tuesday, on increased demand for the greenback from importers and banks. Persistent foreign capital outflows and elevated global crude oil prices also impacted the domestic unit. Investors remained on sidelines ahead of directional cues from central bank meetings and U.S. inflation data due later in the week. However, losses remain capped as some support came with Finance minister Nirmala Sitharaman’s statement that the country's growth will be driven by fiscal spending. She said BRICS should continue to serve as a platform to engage in dialogues and facilitate exchange of experiences, concerns and ideas for rebuilding a sustainable and inclusive growth trajectory. On the global front, the U.S. dollar rose to a two-week high as rising U.S. Treasury yields supported the greenback, pushing the Japanese yen to its lowest level against the dollar in two decades.

Finally, the rupee ended at 77.78 (Provisional), weaker by 12 paise from its previous close of 77.66 on Monday. The currency touched a high and low of 77.80 and 77.69 respectively.

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