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Rupee weakens against US dollar on Tuesday

25 Jan 2022 Evaluate

Indian rupee weakened against US dollar on Tuesday weighed down by weak domestic equities following sustained fund outflows from foreign institutional investors. Foreign Institutional Investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 3,751.58 crore on Monday, exchange data showed. Further, strong American currency overseas, concerns over potential military conflict in Ukraine, and elevated crude oil prices also weighed on rupee sentiments. Meanwhile, investors are cautiously awaiting the outcome of the US Federal Reserve meeting this week, which will be scrutinized for clues on a timetable for interest rate hikes and asset tapering.

The partially convertible currency is currently trading at 74.70, weaker by 10 paise from its previous close of 74.60 on Monday. The currency touched a high and low of 74.7525 and 74.5750 respectively.

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