Indian rupee weakened considerably against dollar on Tuesday due to fresh demand for American currency from banks and importers. Investors also preferred to remain on the sidelines ahead of the key events -- RBI's monetary policy and the US inflation data -- due later this week. The rupee sentiment was hit with a private report forecasted a steeply higher retail inflation print for July, pegging it at 6.7 per cent, up 190 basis points from the previous month, citing the sharp rise in food prices. Some concern also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,892.77 crore on Monday. The domestic currency was also weighed down by dollar's strengthen against some other currencies overseas. On the global front, U.S. dollar turned higher on Tuesday after another disappointing set of Chinese trade figures hurt the yuan, the Aussie and kiwi, while the yen also eased after Japanese real wages declined for a 15th straight month.
Finally, the rupee ended at 82.91 (Provisional), weaker by 16 paise from its previous close of 82.75 on Monday. The currency touched a high and low of 82.93 and 82.78 respectively.
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