The Indian rupee weakened against the US dollar and breached 95-per-dollar mark in early trade on Thursday after hawkish signals from some Federal Reserve policymakers lifted the American currency and US bond yields. The US Federal Reserve has kept key interest rates unchanged for the fifth consecutive policy in a row at 3.5% to 3.75%, the decision was notably divided the most since 1992, as high energy prices added inflation pressures. Rupee weakened further due to an unabated rise in Crude oil prices, triggered by reports of a possible extension of the US blockade at the Strait of Hormuz. Moreover, sustained foreign institutional selling also dampened rupee sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,468.42 crore on Wednesday, exchange data showed.
The partially convertible currency is currently trading at 95.28, weaker by 40 paise from its previous close of 94.88 on Wednesday. The currency touched a high and low of 95.3450 and 95.01 respectively.
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