Rupee ends lower against dollar on Tuesday

Indian rupee weakened considerably against dollar on Tuesday as a strong US dollar and weak domestic equities dented investor sentiments. Muted domestic macroeconomic data and sustained FII outflows also mounted downside pressure on rupee. Traders were concerned as India's manufacturing sector growth eased in the month of September. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 57.5 in September 2023 from 58.6 in August 2023. Investors ignored finance ministry’s statement that gross goods and services tax (GST) collection rose 10 percent to over Rs 1.62 lakh crore in September 2023, crossing the Rs 1.6 lakh crore mark for the fourth time during the current financial year (FY24), as compared to Rs 1.47 lakh crore in September 2022. On the global front, the dollar reached fresh highs on Tuesday, pushing the yen down closer to a potential intervention zone, after strong U.S. economic data bolstered the view that the Federal Reserve will keep interest rates higher for longer.

Finally, the rupee ended at 83.20 (Provisional), weaker by 14 paise from its previous close of 83.06 on Friday. The currency touched a high and low of 83.23 and 83.17 respectively.