Rupee ends weaker for second straight session

Indian rupee continued its downtrend for the second-straight day against the US dollar on Tuesday, as unabated foreign fund outflow hit market sentiments. Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 219.87 crore, according to exchange data. Traders remained worried after Christian de Guzman - senior vice president at Moody's Investors Service and primary analyst for India said that India's gross domestic product (GDP) growth is seen declining to 5.6 percent in 2023-24, although it will still be one of the best performing large economies in the G-20. However, a weak dollar and fall in crude prices capped the some losses in the local currency. On the global front, dollar hovered near a nine-month low against the euro and surrendered recent gains against the yen on Tuesday, as traders weighed the risks of a U.S. recession against the outlook for Federal Reserve monetary policy.

Finally, the rupee ended at 81.68 (Provisional), weaker by 26 paise from its previous close of 81.42 on Monday. The currency touched a high and low of 81.77 and 81.42 respectively.