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Rupee weakens against US dollar on strong demand for American currency globally

21 Jun 2022 Evaluate

Indian rupee weakened against the US dollar on Tuesday as strong demand for American currency globally weighed on rupee sentiments. Further, persistent foreign fund outflows also putting pressure on Rupee to depreciate further. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,217.12 crore on Monday, exchange data showed. Fears of aggressive interest rate hikes and their impact on economic growth kept investors cautious. Meanwhile, investors are awaiting US Fed Chair Jerome Powell’s testimony for fresh hints on the world’s most powerful central bank’s next rate hike move.

The partially convertible currency is currently trading at 78.08, weaker by 10 paise from its previous close of 77.98 on Monday. The currency touched a high and low of 78.0875 and 78.0000 respectively.

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