Indian rupee weakened against the US dollar on Thursday tracking weak domestic equity markets and strengthening American currency overseas. Meanwhile, a private report has lowered its forecasts for India's economic growth in the next two fiscal years on global headwinds, and warned that macro stability indicators like inflation are set to worsen going ahead. Moreover, persistent foreign fund outflows and elevated crude oil prices also weighed on rupee sentiment. Foreign Institutional Investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 3,609.35 crore on Wednesday, exchange data showed. On the global front, the United States dollar gained as US inflation eased less than expected, keeping the US central bank on course to tighten monetary policy aggressively.
The partially convertible currency is currently trading at 77.56, weaker by 31 paise from its previous close of 77.25 on Wednesday. The currency touched a high and low of 77.6325 and 77.5050 respectively.
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