Rupee weakens against US dollar on Tuesday
The Indian rupee weakened against the US dollar on Tuesday due to massive withdrawal of foreign funds on fears that US President Donald Trump's intensifying trade war could lead to a global recession. Donald Trump has threatened China with an additional 50% tariff on Chinese goods imported into the United States unless China withdraws its countermeasures. A recovery in crude oil prices has also dampened rupee sentiments. Foreign institutional investors offloaded equities worth Rs 9,040.01 crore on a net basis on Monday, exchange data showed. Meanwhile, investors are keenly awaiting the Reserve Bank of India's Monetary Policy Committee meeting tomorrow, Indian corporate Q4 earnings, as well as important macroeconomic numbers due later this week. However, a weaker American currency and firm domestic equity markets, have limited further falls in rupee.
The partially convertible currency is currently trading at 85.92, weaker by 16 paise from its previous close of 85.76 on Monday. The currency touched a high and low of 85.93 and 85.8250 respectively.
