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Rupee weakens against US dollar on Tuesday

18 Jan 2022 Evaluate

Indian rupee weakened against the US dollar on Tuesday tracking weakness in the domestic equities and following fund outflows by Foreign Institutional Investors (FIIs). FIIs remained net sellers in the capital market as they offloaded shares worth Rs 855.47 crore on Monday, exchange data showed. Strong American currency overseas, a sharp rise in US Treasury yields and elevated crude oil prices also weighed on rupee sentiments. Meanwhile, investors are awaiting Federal Open Market Committee (FOMC) meeting on January 26 and the Union Budget on February 1. The US central bank’s interest rate-setting committee has signalled three rate hikes in 2022, is widely expected to announce the first rate increases in March.

The partially convertible currency is currently trading at 74.45, weaker by 20 paise from its previous close of 74.25 on Monday. The currency touched a high and low of 74.4500 and 74.3650 respectively.

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