Indian rupee weakened against the US dollar on Monday, tracking weak domestic equities and strengthening of the American currency in the overseas market. Further, sustained foreign fund outflows too added pressure on domestic unit. Foreign institutional investors (FIIs) sold shares worth Rs 704.92 crore on Friday, exchange data showed. Meanwhile, India’s trade deficit unexpectedly widened in January, as exports contracted for a sixth straight month while the decline in imports eased. The gap between exports and imports was at $15.2 billion last month, compared with $11.25 billion in December, data released by the Commerce Ministry on Friday showed. Though, easing crude prices supported the rupee and restricted its fall. On the global front, the euro held near 3-year low as concerns mounted about weakening economic growth in Europe at a time financial markets and policy makers fret about a new threat to the global economy from a fast spreading corona virus in China.
The partially convertible currency is currently trading at 71.43, weaker by 6 paise from its previous close of 71.37 on Friday. The currency touched a high and low of 71.4825 and 71.4000 respectively. The reference rate for the dollar stood at 71.38 and for Euro stood at 77.35 on February 14, 2020. While the reference rate for the Yen stood at 65.03, the reference rate for the Great Britain Pound (GBP) stood at 93.12.
