Rupee weakens against US dollar on Wednesday
The Indian rupee weakened against the US dollar on Wednesday amid a rise in global crude oil prices and lower-than-expected trade deficit, both exports and imports decreased, which indicates economic deceleration. Moreover, weak domestic equities also dampened rupee sentiments. However, foreign fund inflows and weak American currency at overseas markets have limited further losses in the local unit. Foreign institutional investors bought equities worth Rs 120.47 crore on a net basis on Tuesday, exchange data showed. Meanwhile, an Indian commerce ministry team is in Washington for another round of talks from Monday on the proposed bilateral trade agreement (BTA), which will conclude on Thursday.
The partially convertible currency is currently trading at 85.77, weaker by 1 paise from its previous close of 85.76 on Tuesday. The currency touched a high and low of 86.05 and 85.74 respectively.
