Rupee weakens against US dollar on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday amid foreign fund outflows from the Indian capital market. Foreign Institutional Investors offloaded equities worth Rs 1,794.80 crore on Tuesday, but the Domestic Institutional Investors remained buyers as they bought equities worth Rs 3,812.37 crore on a net basis, exchange data showed. However, some falls were capped by the RBI's major liquidity announcement and the weakness of the American currency in the overseas market. RBI has unveiled a plan to inject nearly Rs 3 trillion over the coming weeks through a combination of open market operations (OMOs) and a foreign exchange swap, which will allow the RBI to keep rupee weakness under control.
The partially convertible currency is currently trading at 89.74, weaker by 11 paise from its previous close of 89.63 on Tuesday. The currency touched a high and low of 89.75 and 89.51 respectively.
