Indian rupee weakened against the US dollar on Monday amid rising demand for the American unit against other currencies overseas and sustained foreign fund outflows. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 682.93 crore on Friday, as per provisional data. Meanwhile, the Reserve Bank of India (RBI) on Friday cut interest rates for the fifth time this year in an attempt to kick start the slowing economy and it also slashed the GDP growth projection for financial year 2019-20 to 6.1% from the earlier forecast of 6.9%. On the global front, the yen gained slightly and the Yuan slipped as investors nervously awaited Sino-US talks this week for signs of whether the two sides can de-escalate or end their punishing trade war.
The partially convertible currency is currently trading at 70.96, weaker by 8 paise from its previous close of 70.88 on Friday. The currency touched a high and low of 71.09 and 70.94 respectively. The reference rate for the dollar stood at 70.87 and for Euro stood at 77.78 on October 4, 2019. While the reference rate for the Yen stood at 66.36, the reference rate for the Great Britain Pound (GBP) stood at 87.52.
