Indian rupee weakened against the US dollar on Wednesday, tracking weakness in the domestic equities amid persistent foreign fund outflows. Foreign Institutional Investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 2,701.21 crore on Tuesday, exchange data showed. Further, firm American currency at overseas markets also weighed on rupee sentiments. Fears of aggressive interest rate hikes and their impact on economic growth also kept investors cautious. Meanwhile, investors are now awaiting cues on monetary policies from the US Federal Reserve Chair’s testimonies to the Congress. However, lower crude prices in the international market restricted fall in rupee.
The partially convertible currency is currently trading at 78.16, weaker by 3 paise from its previous close of 78.13 on Tuesday. The currency touched a high and low of 78.1875 and 78.13 respectively.
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