Rupee weakens against US dollar in early trade on Tuesday
The Indian rupee weakened against the US dollar in early trade on Tuesday tracking weak equities and persistent foreign fund outflows from the Indian capital market, even as active intervention from the RBI limited losses. Foreign institutional investors offloaded equities worth Rs 3,262.82 crore on Monday, exchange data showed. Moreover, rising geopolitical uncertainty and strong dollar demand from metal importers have also weighed on rupee sentiments. However, some falls were limited by sell-off in American currency against major overseas rivals amid US President Donald Trump's fresh tariff threat on eight European Union members over Greenland. Meanwhile, traders are eyeing the delayed US PCE inflation report due later this week that could provide more clues on the Federal Reserve's interest rate path.
The partially convertible currency is currently trading at 91.01, weaker by 11 paise from its previous close of 90.90 on Monday. The currency touched a high and low of 91.0650 and 90.91 respectively.
