Indian rupee weakened against the U.S. dollar on Tuesday amid heightened tensions in the West Asia after US President Donald Trump rejected Iran’s counter offer and said that fragile ceasefire is on ‘life support’. The tensions have pushed up the Brent crude oil prices near $107 a barrel, which also weighed on the rupee. Moreover, a cut in India’s GDP forecast by Moody's Ratings kept investors on edge. Moody's Ratings, in its Global Macro Outlook May update, has cut India’s Gross Domestic Product (GDP) growth forecast for 2026 by 0.8 percentage points to 6%, following growth of 7.5% in 2025. The downgrade reflects subdued private consumption, weaker capital formation, and slowing industrial activity amid rising energy costs. On the global front, the euro has weakened against the U.S. dollar on Tuesday amid growing expectation of rate hikes by the European Central Bank.
Finally, the rupee ended at 95.67 (Provisional), weakened by 39 paise from its previous close of 95.28 on Monday. The currency touched a high and low of 95.74 and 95.42 respectively.
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