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Rupee weakens against US dollar on weak domestic equities

14 Jul 2020 Evaluate

Indian rupee weakened against the US dollar on Tuesday, tracking weak domestic equities following weak global cues as a new round of restrictions to check corona virus and an evolving Sino-US tensions spooked investors. Besides, strengthening American currency and surging corona virus cases too added pressure on domestic currency. Health ministry data showed the death toll in India due the corona virus rose to 23,727 and the number of infections crossed 9-lakh mark, while the number of cases around the world crossed 1.30 crore with the death toll topped at 5.72 lakh. Investor sentiment weakened further after India's June Consumer Price Index (CPI) breached RBI's tolerance band of 6%. Retail inflation increased to 6.09 per cent in June, mainly on account of higher prices of food items, government data showed. However, steady crude oil prices and foreign fund inflows supported the rupee and restricted its fall. Exchange data showed, Foreign Institutional Investors (FIIs) bought shares worth Rs 221.76 crore on Monday.

The partially convertible currency is currently trading at 75.44, weaker by 25 paise from its previous close of 75.19 on Monday. The currency touched a high and low of 75.4500 and 75.2800 respectively. The reference rate for the dollar stood at 75.28 and for Euro stood at 84.79 on July 10, 2020. While the reference rate for the Yen stood at 70.46, the reference rate for the Great Britain Pound (GBP) stood at 94.76.

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