Indian rupee weakened against the US dollar on Tuesday, following a volatile opening of domestic equities in line with Indo-China border tensions. Further, strengthening of American currency overseas and foreign fund outflows also weighed on the domestic currency. Foreign Institutional Investors (FIIs) sold shares worth Rs 6.93 crore on a net basis on Monday, while Domestic Institutional Investors (DIIs) were seen selling equities worth Rs 815 crore. Moreover, rising corona virus cases in the country is also dampened sentiments to a great extent. Union Health Ministry data showed, India’s corona virus tally of cases went past 42 lakh with a record 90,802 people being infected in a day, while the death toll climbed to 71,642. On the global front, the US dollar gained in Asia, with moves subdued ahead of Thursday’s European Central Bank (ECB) meeting.
The partially convertible currency is currently trading at 73.41, weaker by 6 paise from its previous close of 73.35 on Monday. The currency touched a high and low of 73.6400 and 73.3700 respectively. The reference rate for the dollar stood at 73.33 and for Euro stood 86.85 on September 04, 2020. While the reference rate for the Yen stood at 69.07, the reference rate for the Great Britain Pound (GBP) stood at 97.34.
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