Indian rupee weakened against the US dollar on Wednesday due to strong dollar overseas ahead of data expected to show US manufacturing activity and hiring continued to recover from the economic shock caused by the corona virus pandemic. Moreover, continued capital outflows and concerns over rising corona virus cases also weighed on investor sentiment. Foreign Institutional Investors (FIIs) sold shares worth Rs 2,000.08 crore on Tuesday, exchange data showed. Though, mild gains in domestic equity markets supported rupee and capped its fall. Union health ministry data on Wednesday showed that India recorded more than 500 fatalities due to the Covid-19 in the last 24 hours, the biggest single-day spike, taking its death toll to 17,400 even as 18,653 new infections pushed the infection tally beyond 5.85 lakh.
The partially convertible currency is currently trading at 75.53, weaker by 2 paise from its previous close of 75.51 on Tuesday. The currency touched a high and low of 75.5750 and 75.4875 respectively. The reference rate for the dollar stood at 75.56 and for Euro stood at 85.11 on June 29, 2020. While the reference rate for the Yen stood at 70.57, the reference rate for the Great Britain Pound (GBP) stood at 93.58.
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