Indian rupee weakened against the US dollar on Wednesday due to heavy selling in domestic equities and foreign fund outflows. Foreign institutional investors (FIIs) pulled out Rs 501.11 crore on a net basis Tuesday, provisional data showed. Besides, strength in dollar against some major rival currencies, also added pressure on the domestic currency. However, easing crude oil prices supported the rupee and restricted the downfall. On the global front, fears of a further escalation in the Sino-US trade dispute kept the dollar steady on Wednesday, holding gains made overnight after investors scooped up safe-haven assets, including US Treasuries. The Trump administration on Tuesday removed India from its currency monitoring list of major trading partners, citing certain developments and steps being taken by New Delhi which address some of its major concerns.
The partially convertible currency is currently trading at 69.74, weaker by 5 paise from its previous close of 69.69 on Tuesday. The currency touched a high and low of 69.8400 and 69.7250 respectively. The reference rate for the dollar stood at 69.43 and for Euro stood at 77.82 on May 27, 2019. While the reference rate for the Yen stood at 63.38, the reference rate for the Great Britain Pound (GBP) stood at 88.47.
