Indian rupee weakened against the U.S. dollar on Tuesday ahead of the Reserve Bank of India’s monetary policy review. Besides, persistent foreign capital outflow and uncertainties over easing of tensions in the West Asia have weighed on risk sentiment. The foreign institutional investors were the net sellers on Monday’s trade, offloading securities worth Rs 8,167.17 crore. Meanwhile, traders ignored Finance Minister Nirmala Sitharaman’s statement that strong fiscal discipline has given India enough flexibility to increase capital expenditure, support sectors affected by the West Asia crisis, and allow the Reserve Bank of India to consider further rate cuts. She explained that sound public finance helps a country handle economic downturns better. On the global front, the euro remained firm against the dollar on Tuesday, hovering around $1.154, ahead of U.S. President Donald Trump's deadline for Iran to open the Strait of Hormuz.
Finally, the rupee ended at 93.12 (Provisional), weakened by 22 paise from its previous close of 92.90 on Monday. The currency touched a high and low of 93.12 and 92.86 respectively.
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