Rupee weakens against US dollar in early trade on Tuesday
The Indian rupee weakened against the US dollar in early trade on Tuesday due to elevated crude oil prices as the expiry of a fragile US-Iran truce revived concerns over energy supplies. Moreover, persistent demand for the American currency, foreign fund outflows, and the Reserve Bank of India's earlier-than-expected closure of the concessional FCNR(B) forex-swap facility by a month to August 31, 2026, also weighed on investor sentiment. Foreign institutional investors (FIIs) offloaded equities worth Rs 2,535.10 crore on a net basis on Monday, exchange data showed. Meanwhile, rising US yields also dented the rupee, despite market expectations that the Federal Reserve will not hike interest rates next month.
The partially convertible currency is currently trading at 95.67, weaker by 6 paise from its previous close of 95.61 on Monday. The currency touched a high and low of 95.6850 and 95.6475 respectively.
