Indian rupee weakened considerably against dollar on Tuesday amid a strong American currency and higher crude oil prices. Foreign fund outflows from the domestic equity markets also weakened the local currency. Traders were worried as India’s services purchasing managers' index (PMI) fell to 60.1 in August from 62.3 recorded in July. On the global front, the dollar was firm on Tuesday and the Aussie under a little pressure as traders watched out for the Reserve Bank of Australia's interest rate decision with bets that rates may have peaked. Besides, a deteriorating global growth picture sent the pound low against the dollar on Tuesday after a survey showed business activity in Britain contracted last month.
Finally, the rupee ended at 83.06 (Provisional), weaker by 35 paise from its previous close of 82.71 on Monday. The currency touched a high and low of 83.07 and 82.78 respectively.
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