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 sustained Foreign Institutional Investor (FII) outflows, as they offloaded equities worth Rs 4,699.14 crore on a net basis on Monday. Moreover, strong American currency, elevated US Treasury yields and concerns over rising Brent crude prices due to renewed geopolitical risks in the Middle East have also dampened rupee sentiments. Meanwhile, investors are cautious ahead of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) decision tomorrow, which is widely expected to deliver a 25-basis point interest rate hike to 5.50%.
The partially convertible currency is currently trading at 96.42, weaker by 7 paise from its previous close of 96.35 on Monday. The currency touched a high and low of 96.4375 and 96.2975 respectively.
