Indian rupee weakened against the U.S. dollar on Tuesday as expectations of a rate hike by Federal Reserve supported dollar’s strength. Further, fund outflows from foreign institutional investors (FII) spread caution among investors. FIIs were the net sellers on Monday’s session, offloading securities worth Rs 635.91 crore. Meanwhile, growth of India's private sector softened in the month of June, with slower demand for Indian goods and services, restricting the extent to which output levels were raised. Overall new orders volumes continued to rise strongly in June, despite the rate of expansion slowing to the weakest in three months. On the global front, the British pound has weakened against the U.S. dollar on Tuesday amid weaker UK economic data.
Finally, the rupee ended at 94.76 (Provisional), weakened by 13 paise from its previous close of 94.63 on Monday. The currency touched a high and low of 94.92 and 94.63 respectively.
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