Rupee weakens against US dollar on Thursday
The Indian rupee weakened against the US dollar on Thursday due to persistent foreign fund outflows in the market. Foreign Institutional Investors sold equities worth Rs 1,750.03 crore on Wednesday, exchange data showed. Moreover, slight gains in dollar also kept rupee under pressure. Meanwhile investors are awaiting the resumption of US economic data to gauge the Federal Reserve interest rate path. However, some weaknesses were limited by renewed optimism over US-India trade talks, interventions from the Reserve Bank of India, and reports that India’s retail inflation eased sharply to a record low of 0.25% in October from 1.44% in September which is opening the door for an RBI rate cut in December.
The partially convertible currency is currently trading at 88.69, weaker by 7 paise from its previous close of 88.62 on Wednesday. The currency touched a high and low of 88.70 and 88.66 respectively.
