Indian rupee weakened against the US dollar on Monday, tracking strong American currency in the overseas market and massive sell-off by foreign institutional investors from the domestic capital market. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 5,142.63 crore on Friday, exchange data showed. Meanwhile the US central bank Fed is widely expected to announce that it would begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year. Indian rupee had seen a fall last week due to rise on crude oil prices. On the global front, the US dollar held near a 2 1/2-week high to major rivals as quickening inflation in the United States boosted the case for earlier interest rate hikes by US the Federal Reserve.
The partially convertible currency is currently trading at 74.91, weaker by 3 paise from its previous close of 74.88 on Friday. The currency touched a high and low of 75.0400 and 74.9025 respectively.
