Rupee ends considerably weaker against dollar

Continuing previous sessions drubbing, Indian rupee concluded substantially weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Sentiments remained under pressure as ICRA projects fiscal deficit at a higher Rs 17.9 trillion, driven by the two major outlays intended to bolster confidence amongst households, namely free food grains under the PMGKAY scheme and an enhanced outgo for MGNREGA. Traders failed to take solace with the commerce ministry statement that exports of engineering goods rose 54 per cent to $81.8 billion during April-December 2021-22 as compared to the same period of the previous year. In the corresponding nine-month period of 2020-21, exports stood at $52.9 billion. The sector accounted for over 27 per cent in India’s total exports basket during the period. On the global front, dollar edged higher on Tuesday to within striking distance of its two-week peak, as investors bought safe-haven currencies amid tensions between Russia and the West over Ukraine while awaiting the outcome of the Federal Reserve's policy meeting.

Finally, the rupee ended 74.78 (Provisional), weaker by 18 paise from its previous close of 74.60 on Monday. The currency touched a high and low of 74.80 and 74.57 respectively.