Indian rupee weakened against the US dollar on Tuesday due to weakness in domestic equities, despite persistent foreign fund inflows. Retail inflation declined to 6.93% in November from 7.61% in October, though it remained above the central banks tolerance level of 6%. Meanwhile, Foreign Institutional Investors (FIIs) bought shares worth Rs 2,264.38 crore on a net basis on Monday, exchange data showed. On the global front, the US dollar traded near 2-1/2 year lows against its major peers ahead of the Federal Reserve meeting this week and as demand for the safest assets remained weak amid progress toward agreeing US fiscal stimulus and optimism for a Brexit deal.
The partially convertible currency is currently trading at 73.65, weaker by 10 paise from its previous close of 73.55 on Monday. The currency touched a high and low of 73.6725 and 73.5950 respectively. The reference rate for the dollar stood at 73.59, and for Euro stood 89.46 on December 11, 2020. While the reference rate for the Yen stood at 70.73, the reference rate for the Great Britain Pound (GBP) stood at 98.00.
