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Rupee weakens against dollar amid geopolitical tensions

11 Jun 2026 Evaluate

Indian rupee weakened against the U.S. dollar on Thursday as continued hostilities in West Asia sparked caution among investors. Further, persistent fund outflows from foreign institutional investors (FIIs) weighed on rupee. FIIs were the net seller on Wednesday’s session, offloading securities worth Rs 2,124.98 crore. Meanwhile, Reserve Bank of India (RBI) in its latest data has showed that India's total outward foreign direct investment (FDI) commitments fell by 49.02% month-on-month, dropping to $4.49 billion in May 2026 from $8.84 billion in April 2026. The decline was led by a reduction in overseas equity investments, loans, and guarantees. On the global front, the South Korean won has weakened against the U.S. dollar on Thursday as overseas investors continued to pullout funds from South Korean markets.

Finally, the rupee ended at 95.77 (Provisional), weakened by 52 paise from its previous close of 95.25 on Wednesday. The currency touched a high and low of 95.79 and 95.55 respectively.

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