Indian rupee weakened against the US dollar on Wednesday on sustained outflow by the overseas investors. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,107.93 crore on Tuesday, as per provisional data. Meanwhile, market participants are keeping an eye on outcome of Reserve Bank of India's monetary policy review meet, in which the central bank is widely-expected to cut interest rates further to boost growth and spending. On the global front, the dollar fell against the yen and the yuan weakened, in a sign investors remain wary that China’s currency policy has become a new flashpoint in its trade war with the United States.
The partially convertible currency is currently trading at 70.94, weaker by 13 paise from its previous close of 70.81 on Tuesday. The currency touched a high and low of 70.9650 and 70.8800 respectively. The reference rate for the dollar stood at 70.35 and for Euro stood at 78.26 on August 5, 2019. While the reference rate for the Yen stood at 66.42, the reference rate for the Great Britain Pound (GBP) stood at 85.25.
