Indian rupee ends lower as investors cover dollar shorts ahead of key rate meetings

The Indian rupee ended lower on Tuesday as investors adjusted their short dollar positions ahead of key rate decisions by the U.S. Federal Reserve and European Central Bank later this week. The market expects the ECB to adjust its hawkish guidance, while the Fed’s decision could surprise with a dovish shift. The two-day Fed meeting will take place later in the day, following which the central bank is expected to raise rates by 25 basis points. Foreign investors bought over $800 million of Indian equities in the last two sessions taking the S&P BSE Sensex to its highest level since December 20, 2022.