Rupee weakens against US dollar on Monday
The Indian rupee weakened against the US dollar on Monday, pressured by continued capital outflows from the Indian capital markets, while the RBI policy meeting outcome on October 1 is expected to influence the rupee and government bond movements. Foreign Institutional Investors offloaded equities worth Rs 5,687.58 crore on Friday, exchange data showed. India's forex reserves dropped by $396 million to $702.57 billion for the week ended September 19, the RBI data showed. Moreover, rupee sentiment remained weak due to the US President Donald Trump's tariff policies on pharma and their impact on India. The US has announced the imposition of a 100% tariff on branded or patented drugs entering the US from October 1, except for pharmaceutical companies building manufacturing plants in the United States.
The partially convertible currency is currently trading at 88.74, weaker by 2 paise from its previous close of 88.72 on Friday. The currency touched a high and low of 88.75 and 88.69 respectively.
