Rupee weakens against US dollar in early trade on Thursday
The Indian rupee weakened against the US dollar in early trade on Thursday amid the escalating conflict between the United States and Iran. The United States intensified its strikes targeting Iran early on Thursday, hitting targets further north as American forces also fired into a ship it accused of trying to break its naval blockade on the Islamic Republic. Iran retaliated with missile and drone fire targeting Bahrain and Kuwait before dawn. Moreover, foreign fund outflows also continued to weigh on the domestic currency. Foreign Institutional Investors offloaded equities worth Rs 735.83 crore in the domestic equity market on Wednesday, exchange data showed. Although, softer-than-expected US consumer price index (CPI) and producer price index (PPI) reports for June cooled Federal Reserve interest rate hike expectations and limited rupee losses.
