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Rupee weakens against US dollar on Wednesday

29 Dec 2021 Evaluate

Indian rupee weakened against the US dollar on Wednesday due to muted domestic equities, while rupee trading is expected to remain range-bound this week ahead of the year-end holidays. Further, growing concerns over the global surge in Omicron variant cases and its impact on economic recovery, and firm crude oil prices also weighed on rupee sentiments. However, Foreign Institutional Investors (FIIs) were net buyers in the capital market on December 28 as they purchased shares worth Rs 207.31 crore, exchange data showed. On the global front, the US dollar held steady against its major peers. The US central bank Fed is widely expected to start hiking interest rates before several other major central banks such as the European Central Bank, and this has helped the US dollar index to have its best year in 2021 since 2015.

The partially convertible currency is currently trading at 74.75, weaker by 5 paise from its previous close of 74.70 on Tuesday. The currency touched a high and low of 74.7775 and 74.6800 respectively.


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