Rupee weakens on Thursday amid ongoing geopolitical tensions
Indian rupee weakened against the US dollar on Thursday due to escalating tensions in the Middle East, particularly the Iran- Israel conflict and surging crude oil prices. While, robust dollar demand from oil importers also pressured the local currency. Traders overlooked foreign fund inflows. Foreign institutional investors bought equities worth Rs 890.93 crore on a net basis on Wednesday, exchange data showed. Meanwhile, the Federal Reserve decided to keep the benchmark interest rates unchanged at 4.25% to 4.5% and signalled two possible cuts later this year, despite persistent inflation and slowing growth.
The partially convertible currency is currently trading at 86.63, weaker by 20 paise from its previous close of 86.43 on Tuesday. The currency touched a high and low of 86.64 and 85.49 respectively.
