Rupee weakens against US dollar on Thursday
The Indian rupee weakened against the US dollar on Thursday driven by risk aversion fuelled by US President Donald Trump’s announcement of a new 25% tariff on all automotive imports, reignited fears of a global trade war. Meanwhile, the rupee also faced pressure from liquidity constraints and month-end demand for dollars from importers. However, weak American currency and foreign fund inflows into the Indian capital market have supported the rupee at lower levels. Foreign institutional investors bought equities worth Rs 2,240.55 crore on a net basis on Wednesday, exchange data showed.
The partially convertible currency is currently trading at 85.81, weaker by 11 paise from its previous close of 85.70 on Wednesday. The currency touched a high and low of 85.93 and 85.7825 respectively.
