Rupee weakens against US dollar on Wednesday
The Indian rupee weakened against the US dollar on Wednesday amid sluggish domestic equities, the continuous outflow of foreign capital, and a recovery in crude oil prices. Foreign institutional investors offloaded equities worth Rs 2,823.76 crore on a net basis on Tuesday, exchange data showed. Rupee fell further by uncertainties over US President Donald Trump’s tariff policies after Trump said the US would double the forthcoming levy on steel and aluminium to 50% if they come from Canada but later hinted that he might reconsider the additional hike. Investors are cautiously awaiting cues from macroeconomic data to be released in India and the US later in the day. Meanwhile, a weakening American currency index has limited further fall and kept the rupee in a tight range.
The partially convertible currency is currently trading at 87.24, weaker by 3 paise from its previous close of 87.21 on Tuesday. The currency touched a high and low of 87.3250 and 87.1725 respectively.
