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Rupee weakens on strong dollar demand from banks, importers

09 Jul 2019 Evaluate

Indian rupee weakened against the US currency on Tuesday, due to strong dollar demand from banks and importers amid persistent foreign fund outflows. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 401.99 crore Monday, while domestic institutional investors bought shares worth Rs 321.13 crore, as per provisional data. Further, strengthening dollar against major currencies overseas and weak domestic equity market too weighed on the local currency, but softening crude oil prices restricted the rupee's weakness. On the global front, the dollar traded near a three-week high against its peers, as investors reduced bets on aggressive US interest rate cuts ahead of the Federal Reserve chairman's testimony to Congress on the economy.

The partially convertible currency is currently trading at 68.79, weaker by 13 paise from its previous close of 68.66 on Monday. The currency touched a high and low of 68.8400 and 68.6500 respectively. The reference rate for the dollar stood at 68.74 and for Euro stood at 77.51 on July 05, 2019. While the reference rate for the Yen stood at 63.70, the reference rate for the Great Britain Pound (GBP) stood at 86.50.

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