The Indian rupee weakened against the US dollar in early trade on Friday, driven by higher US Treasury yields after stronger-than-expected US producer inflation data lifted expectations of a Federal Reserve rate hike next week. US Consumer Price Index data expected later today will likely provide more clarity on the Fed's interest rate decision. Meanwhile, inflation worries, escalating US-Iran tensions, concerns over India’s import bill, and foreign fund outflows have kept market participants cautious. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 438.24 crore on a net basis on Thursday, exchange data showed.
The partially convertible currency is currently trading at 95.72, weaker by 20 paise from its previous close of 95.52 on Thursday. The currency touched a high and low of 95.7950 and 95.63 respectively.
