Rupee weakens against US dollar in early trade on Friday
The Indian rupee weakened against the US dollar in early trade on Friday, driven down by foreign fund outflows, recovery in crude oil prices and dollar demand from importers. Moreover, weak domestic equities and uncertainty over the US-India trade deal have also dented rupee sentiments. Foreign institutional investors offloaded equities worth Rs 1,721.26 crore on Wednesday, but Domestic institutional investors bought equities worth Rs 2,381.34 crore, exchange data showed. However, some falls were limited as US dollar remaining at its lowest level since early October on expectations of further interest rate cuts by the Federal Reserve next year, while the Reserve Bank of India has also used measures such as a dollar-rupee swap to stabilize sentiment and manage liquidity. Forex markets were closed on Thursday for Christmas.
The partially convertible currency is currently trading at 89.82, weaker by 11 paise from its previous close of 89.71 on Wednesday. The currency touched a high and low of 89.94 and 89.79 respectively.
