Rupee weakens against US dollar on Tuesday
Indian rupee weakened against the US dollar on Tuesday due to a muted trend in domestic equities and caution ahead of the outcome of the US presidential election this week, while this week’s Federal Reserve's monetary policy announcement also pressurised sentiments. Moreover, persistent foreign fund outflows and rising crude oil prices also dragged down the domestic currency. Foreign institutional investors were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 4,329.79 crore, exchange data showed. Although, a steady dollar, growth in India's manufacturing sector and any intervention by the central bank have limited further weakness in rupee. India’s manufacturing sector showed promising signs of growth in October, with the HSBC Purchasing Managers' Index (PMI) climbing from September’s 56.5 to 57.5.
The partially convertible currency is currently trading at 84.12, weaker by 1 paise from its previous close of 84.11 on Monday. The currency touched a high and low of 84.13 and 84.1150 respectively.
