Rupee weakened against US dollar in early trade on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday, driven by the sharp rise in Brent crude toward $90 per barrel following reports of separate attacks on ships by the Houthis and the US forces in the Bab el-Mandeb Strait and Strait of Hormuz respectively. Meanwhile, investors are cautiously awaiting US inflation data due later Wednesday for clues on whether the Federal Reserve will raise interest rates next month, with markets currently split over the prospect of a hike. However, foreign fund inflows and active intervention by the Reserve Bank of India have limited further falls in the rupee. Foreign institutional investors purchased equities worth Rs 258.55 crore on a net basis on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 95.42, weaker by 6 paise from its previous close of 95.36 on Tuesday. The currency touched a high and low of 95.4350 and 95.3950 respectively.
