Indian rupee weakened against the US dollar on Wednesday due to weak domestic equities and tracking similar cues from their Asian peers on growing inflationary pressure in the United State. Moreover, foreign fund outflows, strong American currency and concerns over rising Covid-19 cases also added pressure on rupee sentiment. Foreign Institutional Investors (FIIs) sold shares worth Rs 336 crore, while domestic Institutional Investors (DIIs) were also net sellers to the tune of Rs 676.67 crore in the Indian equity market on Tuesday, exchange data showed. The Union Health Ministry data showed India’s record 4,205 Covid-19 fatalities in a day taking the death toll to 2,54,197, while 3,48,421 new coronavirus infections were reported. The total tally of COVID-19 cases in country now stands at 2,33,40,938. Meanwhile, investors are awaiting Consumer Price India (CPI) inflation and Index of Industrial Production (IIP) data later today.
The partially convertible currency is currently trading at 73.45, weaker by 11 paise from its previous close of 73.34 on Tuesday. The currency touched a high and low of 73.5100 and 73.4200 respectively. The reference rate for the dollar stood at 73.85, and for Euro stood 88.89 on May 4, 2021. While the reference rate for the 100 Yen stood at 67.56, the reference rate for the Great Britain Pound (GBP) stood at 102.53.
