IGI Logo

Indian rupee weakened against US dollar on Thursday, tracking firm American currency at overseas markets and dollar demand from importers. Meanwhile, growing trade deficit and foreign fund outflows have also dampened sentiments. Foreign Institutional Investors were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 799.74 crore, exchange data showed. Now, investors’ focus will be on the US Fed chairman's speech at Jackson Hole Symposium for further cues on the Federal Reserve's rate cut trajectory. Although, downside remained capped as the Federal Reserve's recent meeting minutes reinforced hopes of an interest rate cut coming soon. The RBI is expected to step in to prevent the rupee from breaching the critical 84.00 threshold. The market is anticipated that RBI might sell dollar to maintain stability. 

The partially convertible currency is currently trading at 83.95, weaker by 5 paise from its previous close of 83.90 on Wednesday. The currency touched a high and low of 83.9550 and 83.93 respectively.