Indian rupee weakened against the US dollar on Wednesday pressured by muted trend in domestic equities following rising crude oil prices and foreign fund outflows, even as international ratings agency Moody’s upgraded the outlook on India’s sovereign rating to ‘Stable’ from ‘Negative’ in a revision after nearly two years. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,915.08 crore on Tuesday, exchange data showed. Moreover, strength of the American currency in the overseas market also weighed on rupee sentiments. Meanwhile, the monetary policy committee is widely expected to keep the repo rate unchanged to support recovering growth on Friday. Traders are also eagerly waiting for the US jobs data for a clue on the timing of Federal Reserve policy tightening.
The partially convertible currency is currently trading at 74.63, weaker by 19 paise from its previous close of 74.44 on Tuesday. The currency touched a high and low of 74.6500 and 74.5400 respectively.
