Indian rupee ended substantially stronger on Tuesday on fresh selling of American currency by banks and exporters. Sentiments were upbeat as India's agricultural and processed food products exports rose by 30% to $9.6 billion during April-July this fiscal. Traders remain energized with Finance Minister Nirmala Sitharaman’s statement that many countries have evinced interest for bilateral trade in the rupee after the RBI announced a mechanism recently. Strong gains in domestic equity markets also provided support to the domestic currency. Meanwhile, Chief Economic Advisor V Anantha Nageswaran states that India is not defending the rupee and the Reserve Bank of India is taking necessary steps to ensure that the movement of the rupee is gradual and in line with market trends. On the global front, dollar eased further on Tuesday ahead of U.S. inflation data that could show some signs of softening.
Finally, the rupee ended at 79.17 (Provisional), stronger by 36 paisa from its previous close of 79.53 on Monday. The currency touched a high and low of 79.33 and 79.03 respectively.
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