Indian rupee has softened marginally against the US dollar on Tuesday as lingering uncertainty over reopening of the Strait of Hormuz weighed on investor sentiments. Further, market participants were cautious after BMI, a Fitch Group company, projected India’s growth to slow to 6.6% in the current fiscal as the boost to the economy from last year’s GST reforms wanes and elevated inflation erodes household incomes. Besides, traders overlooked foreign fund inflows from foreign institutional investors (FIIs). FIIs were the net buyers of securities worth Rs 1,974.76 crore on Monday’s session. On the global front, the Australian dollar has weakened against the US dollar on Tuesday after the Reserve Bank of Australia kept its cash rate unchanged at 4.35% for a second consecutive meeting.
Finally, the rupee ended at 95.36 (Provisional), weakened by 6 paise from its previous close of 95.30 on Monday. The currency touched a high and low of 95.45 and 95.36 respectively.
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