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Rupee weakens against US dollar on Tuesday

04 Jan 2022 Evaluate

Indian rupee weakened against the US dollar on Tuesday, tracking the strength of the American currency overseas and rising US Treasury yields following anticipation that the US Federal Reserve will stay on its path of interest rate hikes in 2022. Further, growing concerns over the Omicron variant of Covid 19 and its impact on global economic recovery as well as firm crude oil prices also weighed on rupee sentiments. On the economic front, India has exported goods worth $37.29 billion in December, the highest ever in a month on the back of healthy performance by sectors like engineering, textiles and chemicals; while imports in December also rose to $59.27 billion on account of an increase in oil imports, the preliminary data released by the commerce and industry ministry showed. With this, the trade deficit has widened to $22 billion in December 2021. However, Foreign Institutional Investors (FIIs) remained net buyers in the capital market as they purchased shares worth Rs 902.64 crore on Monday, exchange data showed.

The partially convertible currency is currently trading at 74.54, weaker by 26 paise from its previous close of 74.28 on Monday. The currency touched a high and low of 74.6150 and 74.4800 respectively.

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