Rupee weakens against US dollar on Tuesday
Indian rupee weakened against the US dollar on Tuesday, tracking muted domestic equities and as the US Federal Reserve's cautious stance and anticipation of major US policy shifts in 2025 driving up the dollar index and US 10-year yields. Moreover, slowing growth, widening trade deficit, and persistent foreign fund outflows have also fuelled the rupee's depreciation. Foreign Institutional Investors offloaded Rs 1,893.16 crore in the capital markets on net basis on Monday, exchange data showed. Meanwhile, forex data released by the RBI on Friday showed that India's current account deficit (CAD) moderated marginally to $11.2 billion or 1.2% of GDP year-on-year in the July-September quarter of 2024-25.
The partially convertible currency is currently trading at 85.63, weaker by 11 paise from its previous close of 85.52 on Monday. The currency touched a high and low of 85.6375 and 85.54 respectively.
