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Indian rupee weakens against dollar on Wednesday

01 Jul 2026 Evaluate

Indian rupee weakened against the U.S. dollar on Wednesday amid persistent foreign capital outflows. The foreign institution investors were the net sellers on Tuesday’s session, offloading securities worth Rs 2,556.75 crore. Further, uncertainty surrounding US-Iran negotiations and sustained strength in dollar amid rising expectation interest rate hike by US Federal reserve, weigh on rupee. Meanwhile, India’s manufacturing sector activity continued expansion but at a slower pace in the month of June, as growth slowed across output, new orders, export orders and employment, with international sales recording their weakest increase since March 2023. On the global front, the euro has weakened against the U.S. dollar on Wednesday as investors waited for comments of ECB President Christine Lagarde and new Fed Chair Kevin Warsh for clues on future policy directions.

Finally, the rupee ended at 95.16 (Provisional), weakened by 60 paise from its previous close of 94.56 on Tuesday. The currency touched a high and low of 95.29 and 94.60 respectively.

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