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Rupee weakens against US dollar on Wednesday

09 Feb 2022 Evaluate

Indian rupee weakened against the US dollar on Wednesday followed by fund outflows from foreign institutional investors. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,967.89 crore on Tuesday, exchange data showed. Meanwhile, investors are also waiting for Reserve Bank of India's MPC decision on Thursday. However, gains in global and domestic equities following overnight fall in crude oil prices, capped further weakness in rupee. On the global front, American currency weakened at overseas markets ahead of US inflation data due on Thursday, which will provide clues of the US Federal Reserve’s timeline on interest rate hikes.

The partially convertible currency is currently trading at 74.81, weaker by 7 paise from its previous close of 74.74 on Tuesday. The currency touched a high and low of 74.8600 and 74.6875 respectively.

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