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Rupee weakens against US dollar on Thursday

24 Sep 2020 Evaluate

Indian rupee weakened against the US dollar on Thursday due to sell-off in domestic equities following overnight declines on Wall Street following fresh concerns that the global economic recovery is running out of steam. US Federal Reserve Chairman Jerome Powell said before Congress that further fiscal stimulus is still needed for the US economic recovery to continue. Further, surging corona virus cases globally and significant foreign fund outflows too weighed on investor sentiment. Data showed Foreign Institutional Investors (FIIs) sold shares worth Rs 3,912.44 crore, while Domestic Institutional Investors (DIIs) bought shares of Rs 1,629.23 crore in the Indian equity market on Wednesday.

The partially convertible currency is currently trading at 73.87, weaker by 30 paise from its previous close of 73.57 on Wednesday. The currency touched a high and low of 73.9400 and 73.7525 respectively. The reference rate for the dollar stood at 73.49 and for Euro stood 86.29 on September 22, 2020. While the reference rate for the Yen stood at 70.25, the reference rate for the Great Britain Pound (GBP) stood at 93.97.

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