Indian rupee ended lower against the US dollar on Tuesday as elevated crude oil prices and weak domestic equities weighed on investor sentiments. Foreign fund outflows also put pressure on the rupee. Traders were cautious after Fitch Group said South Asian economies would be most affected amid rising hostilities in the Red Sea due to Houthi attacks. They will experience the largest relative increase in maritime trade distance, shipping time, and costs as the crucial trade route remains inaccessible. It added that India’s economic forecast faces a significant risk in the event of a prolonged spell of disruptions. On the global front, the yen languished near a two-month low on Tuesday ahead of a closely-watched policy decision by the Bank of Japan (BOJ) where expectations are for the central bank to stand pat on its ultra-loose monetary policy settings.
Finally, the rupee ended at 83.15 (Provisional), weaker by 8 paise from its previous close of 83.07 on Friday. The currency touched a high and low of 83.17 and 83.06 respectively.