Rupee weakens against US dollar on Tuesday
The Indian rupee weakened against dollar on Tuesday amidst US dollar’s six-month high in spite of odds of a Fed rate cut after a series of dovish policy remarks. Moreover, subdued domestic equities and foreign fund outflows have also added more pressure on rupee sentiments. Foreign institutional investors sold equities worth Rs 4,171.75 crore on a net basis on Monday, exchange data showed. However, some fall was limited after the Reserve Bank of India's Governor Sanjay Malhotra said there is scope for further rate cuts ahead of RBI policy meeting next week.
The partially convertible currency is currently trading at 89.19, weaker by 3 paise from its previous close of 89.16 on Monday. The currency touched a high and low of 89.19 and 89.02 respectively.
