Rupee weakens against US dollar on Monday
Indian rupee weakened against the US dollar on Monday as firm domestic equity markets failed to support rupee amid sustained outflow of foreign capital and elevated level of American currency index. Foreign institutional investors sold equities worth Rs 4,227.25 crore in the capital markets on a net basis on Friday, exchange data showed. India’s forex reserves dropped by $4.112 billion to $640.279 billion during the week ended December 27, the RBI said on Friday. Meanwhile, Investors are cautiously awaiting the minutes of the US Federal Reserve's December policy meeting due on Wednesday followed by the US non-farm payrolls report due on Friday. Although likely intervention by the Reserve Bank of India, the country’s central bank, helped limit losses.
The partially convertible currency is currently trading at 85.83, weaker by 4 paise from its previous close of 85.79 on Friday. The currency touched a high and low of 85.8350 and 85.77 respectively.
