Rupee weakens against US dollar on Wednesday
The Indian rupee weakened against the US dollar on Wednesday due to uncertainty over the India-US trade agreement. The US president Donald Trump has said the India-US trade deal is not yet finalised and hinted at imposing 20-25% tariffs on Indian exports ahead of the August 1 deadline. A US team will visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries. Moreover, rising crude oil prices, month-end dollar demand from importers and sustained foreign fund outflows also added pressure on the domestic unit. Foreign institutional investors offloaded equities worth Rs 4,636.60 crore on a net basis on Tuesday, exchange data showed. Rupee sentiments remained cautious as investors awaited the US Federal Reserve’s policy decision later today, with markets widely expecting rates to remain unchanged.
The partially convertible currency is currently trading at 87.23, weaker by 32 paise from its previous close of 86.91 on Tuesday. The currency touched a high and low of 87.2550 and 87.05 respectively.
