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Rupee weakens against US dollar tracking muted domestic equities

05 Oct 2021 Evaluate

Indian rupee weakened against the US dollar on Tuesday, tracking muted trend in domestic equities following rising crude oil prices. Further, strength of the American currency in the overseas market also dragged down rupee. However, foreign fund inflows into the capital market capped further weakness in rupee. Foreign Institutional Investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 860.50 crore on Monday, exchange data showed. Meanwhile, investors are awaited on key US payrolls data at the end of the week for clues on the timing of a tapering of US Federal Reserve stimulus and the start of interest rate hikes.

The partially convertible currency is currently trading at 74.52, weaker by 21 paise from its previous close of 74.31 on Monday. The currency touched a high and low of 74.6325 and 74.5000 respectively.

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