Rupee weakens against US dollar on Wednesday
The Indian rupee weakened against the US dollar on Wednesday, dragged down by falling equities, strengthening American currency and an uptrend in crude oil prices. Moreover, month-end dollar demand from exporters and banks also weighed on rupee sentiments. Investors are cautiously watching the passage of a spending and tax bill through the US Congress, that is expected to add trillions of dollars of debt. Meanwhile, investors are also awaiting the release of FOMC Minutes and personal consumption expenditures for April for fresh insights into the Federal Reserve’s interest rate outlook. However, improved prospects for a US-EU trade agreement and foreign fund inflows into Indian capital market have limited further falls in rupee. Foreign institutional investors bought equities worth Rs 348.45 crore on a net basis on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 85.61, weaker by 21 paise from its previous close of 85.40 on Tuesday. The currency touched a high and low of 85.71 and 85.57 respectively.
