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Rupee weakens against US dollar on Wednesday

14 Oct 2020 Evaluate

Indian rupee weakened against the US dollar on Wednesday, as weak domestic equities and strong American currency weighed on investor sentiment. Further, Covid-19 vaccine uncertainty after news that US drugmaker Eli Lilly’s phase three trial of its ACTIV-3 monoclonal antibody treatment for the corona virus has been paused due to potential safety concerns, while Johnson & Johnson had paused its corona virus vaccine candidate clinical trials because of an unexplained illness in a study participant, too added pressure on domestic currency. Moreover, uncertainty surrounding the outcome of the US elections and stalled talks on US stimulus too weighed on rupee. Though, Foreign Institutional Investors (FIIs) bought shares worth Rs 832.14 crore on a net basis on Tuesday, exchange data showed.

The partially convertible currency is currently trading at 73.45, weaker by 10 paise from its previous close of 73.35 on Tuesday. The currency touched a high and low of 73.4650 and 73.3350 respectively. The reference rate for the dollar stood at 73.13 and for Euro stood 86.43 on October 12, 2020. While the reference rate for the Yen stood at 69.34, the reference rate for the Great Britain Pound (GBP) stood at 95.44.

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