Indian rupee weakened against the US dollar on Wednesday, amid sustained foreign fund outflows and rising crude oil prices. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,607.97 crore on Tuesday, according to provisional data. Further, strengthening of the American currency against other currencies overseas kept pressure on the Indian unit. Rupee weakened further by cautious opening in domestic equities after the International Monetary Fund slashed its Gross Domestic Product forecast for India for the current and the next financial year to 7 percent and 7.2 percent, respectively, reflecting a weaker-than expected outlook for domestic demand. On the global front, the dollar hit two-month highs on the euro as investors wagered on a dovish outcome from the European Central Bank's coming policy meeting. The ECB is thought likely to at least offer a nod to easier policy at its meeting on Thursday while the US central bank is widely expected to lower its interest rate target range of 2.25 percent-2.50 percent by 25 basis points at a meeting ending July 31.
The partially convertible currency is currently trading at 68.98, weaker by 4 paise from its previous close of 68.94 on Tuesday. The currency touched a high and low of 69.1000 and 68.9500 respectively. The reference rate for the dollar stood at 69.01 and for Euro stood at 77.42 on July 22, 2019. While the reference rate for the Yen stood at 63.94, the reference rate for the Great Britain Pound (GBP) stood at 86.29.
