Rupee weakens against US dollar in early trade on Tuesday
The Indian rupee weakened against the US dollar in early trade on Tuesday, pressured by Brent crude holding above $87 per barrel amid heightened uncertainty over a potential US-Iran deal and the reopening of the Strait of Hormuz. Moreover, decline in domestic equity markets and persistent dollar demand also pressurising the domestic unit. Investors are cautiously tracking the US Consumer Price Index on Wednesday and US Producer Price Index data on Thursday to gauge upcoming interest rate decisions. Although Foreign fund inflows and intervention by the Reserve Bank of India (RBI) provided some support and prevented a sharper fall. Foreign institutional investors (FIIs) purchased equities worth Rs 1,974.76 crore on a net basis on Monday, exchange data showed.
The partially convertible currency is currently trading at 95.39, weaker by 9 paise from its previous close of 95.30 on Monday. The currency touched a high and low of 95.41 and 95.3750 respectively.
