Rupee weakens against US dollar on Monday
The Indian rupee weakened against the US dollar on Monday due to escalating fears over global trade tensions. After US President Donald Trump hit China with a 54% to cripple exports to the United States, China retaliated with 34% tariffs on all US imports. Meanwhile, investors are awaiting the Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC) meeting starting today. Further, hawkish signals from key Federal Reserve officials and foreign fund outflows have dampened sentiments. On Friday, foreign institutional investors sold shares worth Rs 3,483.98 crore, while domestic institutional investors sold shares worth Rs 1,720.32 crore. Meanwhile, reports showed that India’s services sector activity declined slightly in March, weighed down by a marginal slowdown in sales amid softer demand conditions and easing inflationary pressures.
The partially convertible currency is currently trading at 85.75, weaker by 31 paise from its previous close of 85.44 on Friday. The currency touched a high and low of 85.8550 and 85.57 respectively.
