Rupee weakens against US dollar ahead of inflation data
Indian rupee weakened against the US dollar on Monday ahead of India's August inflation data due out later in the day, which is likely to trend higher to 6.9% in August from 6.71% in July, that could put pressure on RBI to hike interest rates more aggressively in coming months. Meanwhile, investors are also awaiting cues from US CPI data this week. Moreover, the Reserve Bank of India (RBI) said that India's foreign exchange reserves declined by $8 billion to $553.11 billion in the week ended September 2, the lowest level since October 9, 2020. Although, Foreign Institutional Investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 2,132.42 crore on Friday, exchange data showed.
The partially convertible currency is currently trading at 79.68, weaker by 11 paise from its previous close of 79.57 on Friday. The currency touched a high and low of 79.72 and 79.6375 respectively.
