Rupee weakens against US dollar on Wednesday
Indian rupee weakened against the US dollar on Wednesday tracking subdued domestic equity markets as the government lowered India’s economic growth projection for the fiscal year to the weakest since the pandemic, while robust US economic data also fuelled the expectations of delayed interest rate cut by the US Federal Reserve. Moreover, strengthening American currency, unabated foreign fund outflows and higher crude oil prices have also weighed on the Indian currency. Foreign institutional investors offloaded Rs 1,491.46 crore in the capital markets on a net basis on Tuesday, exchange data showed. Traders are cautiously awaiting Friday's US jobs report for policy clues and the minutes from the Fed's December meeting on Wednesday.
The partially convertible currency is currently trading at 85.83, weaker by 9 paise from its previous close of 85.74 on Tuesday. The currency touched a high and low of 85.8425 and 85.82 respectively.
