Indian rupee ended marginally lower against dollar on Tuesday amid a strong American currency and outflow of foreign funds. Some cautiousness also came as crude oil prices nudged higher as investors focused on geopolitical tensions in the Middle East and optimism the U.S. Federal Reserve would soon start cutting interest rates, lifting global economic growth and fuel demand. Moreover, surge in new Covid-19 cases also weighted down on the sentiments. However, a positive equity market sentiment provided a cushion and restricted the fall in the Indian currency. Besides, foreign portfolio investors (FPIs) have injected over Rs 57,300 crore into the Indian equity markets this month so far owing to political stability, robust economic growth, and a steady decline in the US bond yields. On the global front, the dollar was trying to find a floor on Tuesday in holiday-thinned trade, pressured by signs that inflation in the world's largest economy is cooling which will likely give the Federal Reserve room to ease interest rates next year.
Finally, the rupee ended at 83.19, weaker by 3 paise from its previous close of 83.16 on Friday. The currency touched a high and low of 83.21 and 83.10 respectively.
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