Continuing previous session drubbing, Indian rupee ended weaker against dollar on Tuesday on emergence of demand for the greenback from importers. Sentiments were fragile as Indian manufacturing activity eased in the month of May, showing a significant loss of growth momentum. Due to the intensification of the COVID-19 crisis and its detrimental impact on demand, companies observed the slowest rises in new work and output for ten months. Adding more pessimism, State Bank of India revised India's growth outlook downwards for the current financial year as the second wave of Covid-19 and the resultant restrictions will again cripple economic activities. The latest SBI Ecowrap report has projected a 7.9 per cent growth for India's GDP, down from its previous projection of 10.4 per cent growth. On the global front; pound edged lower on Tuesday after touching a fresh three-year high versus the dollar amid expectations for a recovery in the British economy following a successful vaccination programme.
Finally, the rupee ended 72.90, weaker by 28 paise from its previous close of 72.62 on Monday. The currency touched a high and low of 72.94 and 72.54 respectively.