Rupee weakens against US dollar on Wednesday
The Indian rupee weakened against the US dollar on Wednesday due to escalating trade tensions after the US President Donald Trump threatened a 104 percent tariff on Chinese goods, and China firmly rejected what it termed as US blackmail. Foreign institutional investors offloaded equities worth Rs 4,994.24 crore on a net basis on Tuesday, exchange data showed. Rupee sentiments fell further, despite the Reserve Bank's monetary policy decisions, a steep fall in crude oil prices and a weak American currency overseas. The RBI’s rate-setting panel unanimously decided to reduce repo rates by 25 bps to 6% from 6.25%, while changing the stance too, from neutral to accommodative. Market participants closely watch further insights into the Fed’s monetary policy outlook ahead to the minutes from the Federal Reserve’s latest policy meeting due Wednesday, along with consumer inflation data on Thursday and the producer price report on Friday.
The partially convertible currency is currently trading at 86.53, weaker by 27 paise from its previous close of 86.26 on Tuesday. The currency touched a high and low of 86.6750 and 86.47 respectively.
