Indian Rupee ended lower against the US dollar on Tuesday as investors preferred to stay on the sidelines ahead of the US Fed meeting outcome. Traders ignored finance ministry’s statement that Goods and Services Tax (GST) collection grew by 12 per cent in April 2023 to Rs 1.87 lakh crore, the highest monthly mop-up since the rollout of the indirect tax regime. The ministry said the previous high collection of Rs 1.68 lakh crore was in April last year. Besides, India’s manufacturing sector activity improved in the month of April, as factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock-replenishment efforts. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 57.2 in April from 56.4 in March. On the global front, the pound fell on Tuesday, ignoring data highlighting a few bright spots in Britain's economy, as investors focused more closely on the outlook for UK rates relative to others, after the Reserve Bank of Australia delivered a surprise hike.
Finally, the rupee ended at 81.88 (Provisional), depreciating by 6 paise from its previous close of 81.82 on Friday. The currency touched a high and low of 81.95 and 81.72 respectively.
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