Rupee weakens against US dollar in early trade on Monday
The Indian rupee weakened against the US dollar in early trade on Monday despite sustained intervention by the Reserve Bank of India, which is expected to continue curbing exchange-rate volatility ahead of its upcoming policy decision. Rupee sentiment was pressured by a record net sell-off of over Rs 21,100 crore by foreign institutional investors (FIIs) on Friday, the highest single-day outflow in at least two years, amid the rebalancing of the MSCI Global Standard Index. Separately, the RBI announced on Friday that India's forex reserves dropped by $7.511 billion to $681.384 billion during the week ended May 22. Meanwhile, investors are closely monitoring diplomatic efforts to manage the Israel-Lebanon conflict, focusing on a phased de-escalation framework and direct bilateral talks brokered by US Secretary of State Marco Rubio.
