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Rupee weakens against US dollar on Tuesday

02 Jun 2020 Evaluate

Indian rupee weakened against the US dollar on Tuesday after Moody's Investors Service downgraded India's sovereign rating to Baa3, lowest investment grade rating, from Baa2 earlier. Moreover, investors are also concerned about rising corona virus pandemic cases and its impact on the economy. The death toll in India due to corona virus rose to 5,598 and the number of the number of infections rose to 1,98,706, while the number of cases around the world has crossed 62.66 lakh with death toll topped at 3.75 lakh. Sustained rise in crude oil prices too weighed on the domestic currency. Though, firm domestic equities and foreign fund inflows supported the rupee and restricted the fall. Foreign Institutional Investors (FIIs) bought equity shares worth Rs 1,575.46 crore on Monday, exchange data showed.

The partially convertible currency is currently trading at 75.57, weaker by 3 paise from its previous close of 75.54 on Monday. The currency touched a high and low of 75.6050 and 75.5300 respectively. The reference rate for the dollar stood at 75.63 and for Euro stood at 83.91 on May 29, 2020. While the reference rate for the Yen stood at 70.56, the reference rate for the Great Britain Pound (GBP) stood at 93.31.

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