Rupee strengthens against US dollar in early trade on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday, pressured by a stronger American currency overseas following hawkish commentary from Federal Reserve officials. Boston Fed President Susan Collins and Richmond Fed President Tom Barkin warned that inflation pressures could remain elevated and suggested they may favor additional Fed tightening. Moreover, foreign fund outflows also dampened the local unit. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,809.99 crore on a net basis on Tuesday, exchange data showed. However, falling Brent crude prices and sustained intervention by the Reserve Bank of India have limited further weakness in the local unit.
The partially convertible currency is currently trading at 95.68, weaker by 6 paise from its previous close of 95.62 on Tuesday. The currency touched a high and low of 95.6950 and 95.57 respectively.
