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Rupee weakens against US dollar on Monday

11 Jul 2022 Evaluate
Indian rupee weakened against the US dollar on Monday tracking weak domestic equities and persistent foreign fund outflows in the capital market. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they sold shares worth Rs 109.31 crore on Friday, exchange data showed. FIIs have pulled out over Rs 4,000 crore from equities so far in the month of July amid steady appreciation of the US dollar and interest rates hikes in the United States, but the pace of selling has been declining over the last few weeks. Meanwhile, the US dollar index climbed back towards its highest level since November 27, 2002 and investors are waiting for US inflation report which could force another super-sized hike in interest rates. However, sliding crude prices overseas restricted the rupee's fall.

The partially convertible currency is currently trading at 79.40, weaker by 14 paise from its previous close of 79.26 on Friday. The currency touched a high and low of 79.4375 and 79.2400 respectively.  

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