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Rupee weakens against US dollar on Wednesday

04 Dec 2019 Evaluate

Indian rupee weakened against the US dollar on Wednesday amid sustained foreign fund outflows. Foreign Institutional Investors (FII) sold shares worth Rs 1,131.12 crore on Tuesday, exchange data showed. Meanwhile, investors’ eyes are also focused on the RBI monetary policy decision tomorrow, with hopes that the Reserve Bank may cut interest rates for the sixth straight time on December 5 to support growth that has continued to slip. On the global front, the yen and Swiss franc held gains against the dollar as appetite for safe-havens spiked after US President Donald Trump warned a trade deal with China might not be happening till next year's US presidential polls.

The partially convertible currency is currently trading at 71.73, weaker by 7 paise from its previous close of 71.66 on Tuesday. The currency touched a high and low of 71.7850 and 71.7075 respectively. The reference rate for the dollar stood at 71.72 and for Euro stood at 79.02 on December 2, 2019. While the reference rate for the Yen stood at 65.41, the reference rate for the Great Britain Pound (GBP) stood at 92.64.

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