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Rupee weakens against US dollar on muted domestic equities

27 Dec 2021 Evaluate

Indian rupee weakened against the US dollar on Monday as muted domestic equities amid sustained foreign fund outflows weighed down investor sentiments. Foreign Institutional Investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 715.00 crore on December 24, exchange data showed. Moreover, growing concerns over the global surge in Omicron variant cases and its impact on economic recovery as well as firm crude oil prices also dampened sentiments. India saw the highest single day rise of Omicron infections with 156 fresh cases, taking the total tally of such cases to 578, the Union Health Ministry data showed on Monday. The Delhi government on Sunday announced that a night curfew from 11 pm to 5 am will be imposed in the national capital Delhi in view of the surging Covid-19 cases. The night curfew will come into place from today onwards. Meanwhile, rupee trading is expected to remain range-bound this week ahead of the year-end holidays.

The partially convertible currency is currently trading at 75.10, weaker by 7 paise from its previous close of 75.03 on Friday. The currency touched a high and low of 75.16 and 75.02 respectively.

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