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Rupee weakens ahead of economic data releases

12 Jul 2019 Evaluate

Indian rupee weakened against US dollar on Friday as investors took a cautious stand ahead of retail inflation and factory output data releases. Besides, rising crude oil prices, and foreign fund outflows too weighed on the domestic currency. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 316.86 crore Thursday, as per provisional data. However, the weakening of the American currency against other currencies overseas supported the local unit. On the global front, the US dollar extended losses made earlier this week on continued Fed-driven momentum. US Federal Reserve chairman Jerome Powell said this week that the central bank will ‘act as appropriate’ as policymakers consider ‘uncertainties’ emanating from slowing investment, trade disputes and other issues affecting the global economy.

The partially convertible currency is currently trading at 68.53, weaker by 9 paise from its previous close of 68.44 on Thursday. The currency touched a high and low of 68.5800 and 68.4850 respectively. The reference rate for the dollar stood at 68.52 and for Euro stood at 76.79 on July 10, 2019. While the reference rate for the Yen stood at 62.93, the reference rate for the Great Britain Pound (GBP) stood at 85.30.

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