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Rupee weakens on rising demand for American currency overseas

19 Nov 2019 Evaluate

Indian rupee weakened against the US dollar on Tuesday due to rising demand for the American currency against other currencies overseas. Rupee sentiment diminished further following outflows by foreign institutional investors amid some buying in American currency by banks and importers.  Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 270.66 crore on Monday, exchange data showed. Meanwhile, traders were awaiting fresh cues on the potential US-China trade deal. On the global front, the dollar declined against the yen as receding hopes for a preliminary trade deal between the United States and China, troubled by US President Donald Trump's comments that there was no agreement on rollback of tariffs.

The partially convertible currency is currently trading at 71.94, weaker by 10 paise from its previous close of 71.84 on Monday. The currency touched a high and low of 72.0050 and 71.9200 respectively. The reference rate for the dollar stood at 71.71 and for Euro stood at 79.04 on November 15, 2019. While the reference rate for the Yen stood at 66.04, the reference rate for the Great Britain Pound (GBP) stood at 92.36.

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