Indian rupee weakened against the US dollar on Tuesday, as worries over higher domestic inflation weighed on investor sentiments. Data showed the retail inflation rate breached the 6% upper tolerance limit of the RBI for the first time in seven months in January, while the wholesale price index stayed in double-digits for the 10th month in a row. Further, elevated crude oil prices, geopolitical tensions in Russia and Ukraine, possible interest rate hikes by US Federal Reserve and sustained foreign fund outflows also weakened the rupee sentiments. Foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 4,253.70 crore on Monday, exchange data showed.
The partially convertible currency is currently trading at 75.65, weaker by 5 paise from its previous close of 75.60 on Monday. The currency touched a high and low of 75.7200 and 75.5875 respectively.
