Rupee weakens against US dollar in early trade on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday. Despite intervention by the Reserve Bank of India in both the spot and non-deliverable forward markets, the currency remained under pressure as elevated oil prices, higher US Treasury yields, and foreign institutional investor outflows continued to weigh on rupee sentiment. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 739.69 crore in the domestic equity market on Tuesday, exchange data showed. However, the fall was limited after US President Donald Trump backed away from his threat to charge a 20% toll on all cargo going through the Strait of Hormuz, and as softer-than-expected US inflation data reinforced expectations that the Federal Reserve may adopt a less aggressive monetary policy stance in the coming months.
