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Rupee weakens against US dollar on Thursday

03 Oct 2019 Evaluate

Indian rupee weakened against the US dollar on Thursday following weak domestic equities and rising demand for the American currency against other currencies overseas. Further, rising crude oil prices and foreign fund outflows also weighed on the rupee. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,298.56 crore on Tuesday, as per provisional data. Forex market was closed on Wednesday on account of Mahatma Gandhi Jayanti. On the global front, the dollar eased to fresh one-week lows against the euro and yen as investor anxiety deepened in markets over fresh signs of slowing US economic growth and a broadening of global trade frictions. On Wednesday, data showed hiring by US private employers had cooled in September, the latest indicator that the Sino-US trade dispute is hurting the world’s largest economy.

The partially convertible currency is currently trading at 71.20, weaker by 13 paise from its previous close of 71.07 on Tuesday. The currency touched a high and low of 71.35 and 71.17 respectively. The reference rate for the dollar stood at 70.91 and for Euro stood at 77.17 on October 1, 2019. While the reference rate for the Yen stood at 65.49, the reference rate for the Great Britain Pound (GBP) stood at 87.05.

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