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Rupee weakens against US dollar on escalating Sino-US tension

28 May 2020 Evaluate

Indian rupee weakened against the US dollar on Thursday, tracking weak Asian peers amid escalation of tension between the US and China after US President Donald Trump said he was working on a strong response to China's proposed security law in Hong Kong. Further, concerns over growing corona virus cases and its impact on the economy, too weighed on rupee. Data showed the death toll in India due to corona virus rose to 4,531 and the number of cases climbed to over 1.58 lakh in the country, while the number of cases around the world has crossed over 56.93 lakh with death toll topped at 3.55 lakh. Foreign Institutional Investors (FIIs) sold equity shares worth Rs 334.74 crore on Wednesday, exchange data showed. Though, firm domestic equities ahead of the expiry of futures and options contracts of May series, supported the domestic currency and restricted its losses.

The partially convertible currency is currently trading at 75.77, weaker by 6 paise from its previous close of 75.71 on Wednesday. The currency touched a high and low of 75.9050 and 75.7600 respectively. The reference rate for the dollar stood at 75.64 and for Euro stood at 82.64 on May 26, 2020. While the reference rate for the Yen stood at 70.11, the reference rate for the Great Britain Pound (GBP) stood at 92.60.

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