Indian rupee ended lower against the U.S. dollar on Tuesday weighed down by a heavy selloff in domestic equities and persistent foreign capital outflows. Traders overlooked Reserve Bank of India's (RBI) data showing that India’s outward foreign direct investment (FDI) commitments rose substantially to $3.47 billion in February 2024, compared to over $2.82 billion in February 2023. Sequentially, FDI commitments were also up from $2.18 billion in January 2024. Meanwhile, newly elected president of apex exporters body FIEO Ashwani Kumar said that the country’s merchandise exports are expected to reach $450 billion by the end of this fiscal despite geo-political challenges like the Red Sea crisis. On the global front, the Japanese yen tumbled on Tuesday after the central bank made the momentous, but widely anticipated, decision to end its negative interest rate policy, while the dollar rose ahead of the upcoming Federal Reserve decision on rates.
Finally, the rupee ended at 83.03 (Provisional), weaker by 13 paise from its previous close of 82.90 on Monday. The currency touched a high and low of 83.05 and 82.93 respectively.
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