Rupee weakens against US dollar on Friday
Indian rupee weakened against the US dollar on Friday as a surge in US retail sales coupled with a decline in new unemployment claims bolstered US bond yields. Moreover, concerns over elevated crude oil prices, subdued domestic macroeconomic data and foreign fund outflows have also dampened sentiments. Foreign institutional investors were net sellers in the capital markets on Wednesday, as they offloaded shares worth Rs 2,595.27 crore, exchange data showed. Data released on Wednesday showed that India's wholesale inflation fell to a 3-month low of 2.04% in July, while exports contracted 1.2% to $33.98 billion in July and the trade deficit widened to $23.5 billion. However, firm domestic as well as global equity markets and a weakness in American currency have limited further falls in rupee. The forex markets were closed on Thursday on account of the Independence Day.
The partially convertible currency is currently trading at 83.96, weaker by 2 paise from its previous close of 83.94 on Wednesday. The currency touched a high and low of 83.9650 and 83.9350 respectively.
