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Rupee weakens against US dollar on Tuesday

23 Aug 2022 Evaluate
Indian rupee weakened against the US dollar on Tuesday tracking a strong American currency at overseas markets on the prospects that the US Federal Reserve might go for more interest rate hikes. Moreover, worries about inflation also weighed on rupee sentiments. Meanwhile, investors are waiting for Fed Chair Jerome Powell’s address to the Jackson Hole Symposium this Friday for further cues on how aggressively the central bank is likely to be with future interest rate hikes. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 453.77 crore on Monday, exchange data showed. However, some losses in the domestic unit were capped with expectations that the Reserve Bank of India would step in to prevent the rupee from touching a new record low.

The partially convertible currency is currently trading at 79.90, weaker by 6 paise from its previous close of 79.84 on Monday. The currency touched a high and low of 79.90 and 79.81 respectively.

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