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Rupee weakens against US dollar on Thursday

03 Jun 2021 Evaluate

Indian rupee weakened against the US dollar on Thursday tracking strengthening of American currency overseas, while traders awaited a batch of US economic data that could set the tone at central bank meetings later this month. However, firm domestic equities and increased optimism about economic recovery with continuous fall in daily caseload in second Covid wave capped rupee's losses. Meanwhile, the markets now widely expect the Reserve Bank of India to maintain status quo on key policy rates when it announces its bi-monthly monetary policy statement on Friday. Foreign Institutional Investors (FIIs) bought shares worth Rs 921.10 crore and Domestic Institutional Investors (DIIs) also bought shares worth Rs 241.76 crore in the Indian equity market on June 2, exchange data showed.

The partially convertible currency is currently trading at 73.13, weaker by 4 paise from its previous close of 73.09 on Wednesday. The currency touched a high and low of 73.1800 and 73.0500 respectively. The reference rate for the dollar stood at 72.80, and for Euro stood 89.06 on May 25, 2021. While the reference rate for the 100 Yen stood at 66.97, the reference rate for the Great Britain Pound (GBP) stood at 103.31.

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