Rupee snaps 2-day winning streak as dollar advances

Snapping its two-day winning streak, Indian rupee ended weaker against dollar on Monday, amid strong demand for the American currency from importers.

The sentiments turned pessimistic as the Australia and New Zealand Banking Group (ANZ) slashed its forecast for India's economic growth to 6.2 per cent in the financial year ending March 2020 from a previous estimate of 6.5 per cent, warning it would be tough for authorities to engineer a turnaround.

Traders overlooked Fitch Solutions’ statement that the Reserve Bank of India (RBI) is expected to cut interest rates by 40 basis points before the end of the current financial year as monetary easing till now appears to be insufficient in boosting economic growth.

The dollar’s strength against major global currencies overseas also weighed on the local unit. On the global front, pound sterling fell back from a near three-week high against the euro on Monday but sentiment towards the pound was better than in recent sessions as investors hoped Britain and the European Union would make some progress in Brexit talks.

Finally, the rupee ended at 71.43, 29 paise weaker from its previous close of 71.14 on Friday. The currency touched a high and low of 71.05 and 71.48, respectively.