Rupee weakens against US dollar in early trade on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday, weighed down by foreign fund outflows as the war continues to rage in West Asia. Foreign institutional investors sold equities worth Rs 4,741.22 crore on a net basis on Tuesday, exchange data showed. However, fall in global crude oil prices and firm domestic equity markets have limited a sharper decline in the domestic unit. Meanwhile, investors are cautious ahead of the latest Federal Reserve policy decision scheduled for later in the day. All eyes focus on Powell’s guidance on how rising oil prices may shape the Fed’s policy outlook. However, the Reserve Bank of India has intervened in the foreign exchange markets to stabilize the currency near 92.50, helping limit further declines.
The partially convertible currency is currently trading at 92.43, weaker by 3 paise from its previous close of 92.40 on Tuesday. The currency touched a high and low of 92.45 and 92.41 respectively.
