Indian rupee erased initial gains and ended almost flat against the dollar on Tuesday as investors looked ahead to the release of inflation data this week from India, the U.S., China and Japan for directional cues. Some concern also came with a private report stating that India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments. However, traders took some support with provisional data from the NSE showing that foreign institutional investors (FIIs) bought shares worth Rs 16.03 crore on January 8. On the global front, a decline in U.S. consumer inflation expectations kept the dollar rally in check on Tuesday as traders reaffirmed their bets for a slew of Federal Reserve rate cuts this year.
Finally, the rupee ended at 83.13 (Provisional), stronger by 1 paisa from its previous close of 83.14 on Monday. The currency touched a high and low of 83.13 and 83.04 respectively.
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