Indian rupee weakened against the US dollar on Tuesday due to muted trend in the domestic equity market following continuous outflows by foreign funds. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 3,438.76 crore on Monday, exchange data showed. Further, firm American currency overseas also weighed on rupee sentiment. However, lower crude prices as a resurgence of corona-virus cases in Europe restricted the fall in rupee’s value. On the global front, the US dollar was near a four-and-a-half-year top against its peers due to bets of quicker interest rate hikes after US President Joe Biden backed Federal Reserve Chair Jerome Powell for a second term.
The partially convertible currency is currently trading at 74.54, weaker by 15 paise from its previous close of 74.39 on Monday. The currency touched a high and low of 74.5775 and 74.4850 respectively.
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