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Rupee weakens marginally on strengthening of American currency overseas

13 Jun 2019 Evaluate

Indian rupee weakened marginally against the US dollar on Thursday amid strengthening of the American currency against other currencies overseas. Further, weak macro data, foreign fund outflows, and cautious opening in domestic equities too added pressure to the domestic unit. Foreign institutional investors (FIIs) pulled out Rs 1,050.43 crore on a net basis Wednesday, provisional data showed. Retail inflation spiked to 3.05 per cent in May from 2.99 per cent in April, government data showed. On the global front, the dollar held its gains early on Thursday after rebounding from 11-week lows, as peers such as the euro, pound and commodity currencies sagged due to troubles of their own. Weakness in other currencies, however, underpinned the dollar’s latest bounce despite mounting expectations that the Fed could ease monetary policy in the next few months.

The partially convertible currency is currently trading at 69.35, weaker by 1 paise from its previous close of 69.34 on Wednesday. The currency touched a high and low of 69.3800 and 69.3100 respectively. The reference rate for the dollar stood at 69.42 and for Euro stood at 78.57 on June 11, 2019. While the reference rate for the Yen stood at 63.90, the reference rate for the Great Britain Pound (GBP) stood at 88.03.

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