Indian rupee weakened against the US dollar on Wednesday tracking strengthening American currency after the US manufacturing activity accelerated to a nearly two-year high in August. Further, volatility in domestic equities too added pressure on domestic currency. Meanwhile, the rupee had strengthened yesterday supported by liquidity-boosting measures announced by the Reserve Bank of India. Foreign Institutional Investors (FIIs) bought shares worth Rs 486.09 crore on Tuesday, exchange data showed.

The partially convertible currency is currently trading at 72.91, weaker by 4 paise from its previous close of 72.87 on Tuesday. The currency touched a high and low of 73.1200 and 72.9075 respectively. The reference rate for the dollar stood at 73.59 and for Euro stood 87.57 on August 31, 2020. While the reference rate for the Yen stood at 69.67, the reference rate for the Great Britain Pound (GBP) stood at 98.12.

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