Indian rupee weakened against US dollar on Wednesday, tracking firm American currency at overseas markets. Further, volatility in domestic equities and firm crude oil prices also dragged the local unit down. However, sustained foreign fund inflows into the capital market has triggering support to the rupee and capped its fall. Data showed Foreign Institutional Investors (FIIs) bought shares worth Rs 1,041.92 crore, while Domestic Institutional Investors (DIIs) were also net buyers to the tune of Rs 2,167.62 crore in the Indian equity market on Tuesday, exchange data showed. Meanwhile investors are awaiting US Fed meeting outcome for cues on the taper timeline and US Fed's new projections on interest rates.
The partially convertible currency is currently trading at 73.80, weaker by 19 paise from its previous close of 73.61 on Tuesday. The currency touched a high and low of 73.8150 and 73.6600 respectively.