Indian rupee weakened against the US dollar on Friday amid foreign fund outflows into the capital market. Foreign Institutional Investors (FIIs) were net sellers as they offloaded shares worth Rs 212.11 crore in the capital market on Thursday, exchange data showed. Moreover, ongoing concerns over the spread of the Delta Covid variant too weighed on rupee sentiments. However, rally in the domestic equity market and weakness in American currency against its major rivals overseas restricted the rupee’s fall. Official Data showed India’s retail inflation eased to 5.59% in July from 6.26% in June; while the Index of Industrial Production (IIP) grew at 5.7% month-on-month and 13.6% year-on-year.
The partially convertible currency is currently trading at 74.30, weaker by 5 paise from its previous close of 74.25 on Thursday. The currency touched a high and low of 74.3200 and 74.2625 respectively.
