The Indian rupee weakened against the US dollar in early trade on Thursday, as stronger US economic data revived inflation concerns and expectations of further Federal Reserve rate hikes. Moreover, frequent RBI intervention, uncertainty surrounding the US-Iran diplomatic process, and rising US Treasury yields, also kept the domestic unit under pressure. As per a private report, Iran remains open to diplomacy to end the US-Iran war, though the two countries remain far apart on ways to do so. However, foreign fund inflows limited further weakness in the local unit. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,617.45 crore on a net basis on Wednesday, exchange data showed.
The partially convertible currency is currently trading at 95.89, weaker by 16 paise from its previous close of 95.73 on Wednesday. The currency touched a high and low of 95.9050 and 95.8025 respectively.
