Rupee weakens, hits new all-time low against US dollar in early trade on Tuesday
The Indian rupee weakened to a record low of 90.91 against the US dollar in early trade on Tuesday, weighed down by soft domestic equities, sustained foreign fund outflows and continued uncertainty over a trade agreement with the United States. Moreover, dollar demand linked to likely maturity of positions in the non-deliverable forwards (NDF) market also weighed on rupee sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,468.32 crore on Monday, exchange data showed. Meanwhile, investors are cautiously awaiting key US economic data releases, including non-farm payrolls, retail sales, and inflation figures, which could influence the future course of monetary policy. Investors are also preparing for a series of policy decisions from other major central banks this week, including the BOJ, BOE and ECB. However, weaker American currency and a decline in global crude oil prices have capped further losses in the rupee.
The partially convertible currency is currently trading at 90.89, weaker by 11 paise from its previous close of 90.78 on Monday. The currency touched a high and low of 90.91 and 90.7650 respectively.
