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Rupee weakens against US dollar despite firm domestic equities

05 May 2021 Evaluate

Indian rupee weakened against the US dollar on Wednesday, despite firm domestic equities after RBI Governor Shaktikanta Das unveiled liquidity support measures amid rising Covid-19 cases in India. Union Health Ministry data showed India recorded a single-day rise of 3,82,315 new coronavirus infections pushing the total tally of COVID-19 cases to 2,06,65,148, while the cumulative death toll stands at 2,26,188. Moreover, Foreign Institutional Investors (FIIs) sold shares worth Rs 1,772.37 crore, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 987.34 crore in the Indian equity market on Tuesday, exchange data showed. On the global front, possibility of higher US interest rates and a sell-off in tech shares dragging the US dollar index higher.

The partially convertible currency is currently trading at 73.97, weaker by 12 paise from its previous close of 73.85 on Tuesday. The currency touched a high and low of 73.9900 and 73.8000 respectively. The reference rate for the dollar stood at 74.59, and for Euro stood 90.03 on April 27, 2021. While the reference rate for the Yen stood at 68.92, the reference rate for the Great Britain Pound (GBP) stood at 103.58.

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