Rupee weakens against US dollar on Monday
The Indian rupee weakened against the US dollar on Monday as US attack on three nuclear facilities in Iran raised fears of a broader regional conflict. Moreover, surging global crude oil prices, weak domestic equities and strengthening American currency also put pressure on the rupee. Meanwhile, investors are cautiously awaiting remarks from the US Federal Reserve Chair Jerome Powell, scheduled for Tuesday for further cues on the Fed’s next policy moves. However, an increase in foreign fund inflows and a rise in the country’s forex reserves capped further losses in the local currency. Foreign institutional investors bought equities worth Rs 7,940.70 crore on a net basis on Friday, exchange data showed. The Reserve Bank of India data on Friday showed India’s forex reserves rising $2.294 billion to $698.95 billion during the week ended June 13.
The partially convertible currency is currently trading at 86.83, weaker by 28 paise from its previous close of 86.55 on Friday. The currency touched a high and low of 86.85 and 86.67 respectively.
