Indian rupee weakened against the US dollar on Wednesday amid strengthening of American currency against its major peers overseas as optimism over global economic recovery and a possible acceleration in inflation drove US bond yields up. Besides, muted trend in the domestic equity market and dollar demand from importers also weighed on the rupee. Though, a sustained foreign fund inflow into the market has triggering support to the rupee and capped its fall. Foreign Institutional Investors (FIIs) bought shares worth Rs 1,144.09 crore, while Domestic Institutional Investors (DIIs) sold shares worth of Rs 1,559.53 crore in the Indian equity market on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 72.83, weaker by 14 paise from its previous close of 72.69 on Tuesday. The currency touched a high and low of 72.9200 and 72.8200 respectively. The reference rate for the dollar stood at 72.59, and for Euro stood 88.12 on February 15, 2021. While the reference rate for the Yen stood at 69.07, the reference rate for the Great Britain Pound (GBP) stood at 100.88.
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