Snapping previous session’s loss; Indian rupee ended substantially stronger on Tuesday on fresh selling of American currency by banks and exporters. Sentiments perked up as commerce and industry ministry stated that foreign direct investment (FDI) equity inflow in India grew by 19 per cent to $59.64 billion during 2020-21 (FY21) as compared to $49.98 billion in 2019-20 on account of measures taken by the government on the fronts of policy reforms, investment facilitation and ease of doing business. Additional support came in as India and Israel have agreed to enhance their cooperation in agriculture and signed a three-year work program agreement for development in Agriculture cooperation, while affirming the ever-growing bilateral partnership and recognizing the centrality of agriculture and water sectors in the bilateral relationship. On the global front; dollar hit four and half month lows against a basket of peers on Tuesday, as softer-than-expected U.S. data and insistence from Federal Reserve officials that policy would stay pat allayed investor fears about inflation forcing interest rates higher.
Finally, the rupee ended 72.77, stronger by 19 paise from its previous close of 72.96 on Monday. The currency touched a high and low of 72.87 and 72.75 respectively.