Rupee weakens against US dollar in early trade on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday pressured by the strength of the American currency in the overseas market, while stronger-than-expected US labour market data reinforced expectations that the Federal Reserve could keep interest rates higher for longer. Investors remained cautious ahead of the June US ADP employment data and nonfarm payroll figures for fresh insights into the strength of the labour market and the outlook for Federal Reserve policy. Besides, higher crude oil prices after Iran said it would not hold direct talks with US envoys, adding fresh uncertainty to the interim ceasefire between the two sides in the four-month-long war, also kept rupee under pressure. Foreign institutional investors (FIIs) sold equities worth Rs 2,556.75 crore on a net basis on Tuesday, exchange data showed. Meanwhile, India's fiscal deficit for the April-May period of FY27 touched Rs 1.62 lakh crore, which accounts for 9.6% of the full-year target.
The partially convertible currency is currently trading at 94.68, weaker by 12 paise from its previous close of 94.56 on Tuesday. The currency touched a high and low of 94.75 and 94.60 respectively.
