Indian rupee weakened against the US dollar on Tuesday, tracking strengthening American currency overseas after Chinese authorities appeared to be trying to put a brake on recent rises in the yuan. Meanwhile, investors are cautious following muted domestic macro-economic data. The index of industrial production (IIP) shrank 8% in August on a year-on-year basis, marking a marginally improvement compared with July when output contracted 10.8% as per revised estimates. Retail inflation accelerated to 7.34% in September, remaining well above the central bank’s targeted range for the sixth consecutive month, as food prices rose. Though, Foreign Institutional Investors (FIIs) bought shares worth Rs 615.17 crore on a net basis on Monday, exchange data showed.
The partially convertible currency is currently trading at 73.37, weaker by 9 paise from its previous close of 73.28 on Monday. The currency touched a high and low of 73.41 and 73.3225 respectively. The reference rate for the dollar stood at 73.21 and for Euro stood 86.20 on October 09, 2020. While the reference rate for the Yen stood at 69.11, the reference rate for the Great Britain Pound (GBP) stood at 94.79.
