Rupee weakens against US dollar in early trade on Monday
The Indian rupee weakened against the US dollar in early trade on Monday amid escalation of tensions in West Asia. Meanwhile, investors remain cautious ahead of Wednesday's FOMC decision, which could influence dollar demand and emerging-market capital flows. The rupee also faced downward pressure following the release of Reserve Bank of India data on Friday, which revealed a $5.011 billion drop in foreign exchange reserves to $721.016 billion during the week ended October 16. However, fall in Brent crude prices below $110 per barrel, softness in the American currency and US treasury yields, and foreign fund inflows cushioned the downside. Foreign Institutional Investors (FIIs) bought equities worth Rs 887.65 crore on a net basis on Friday, exchange data showed.
The partially convertible currency is currently trading at 95.14, weaker by 21 paise from its previous close of 94.93 on Friday. The currency touched a high and low of 95.1450 and 94.91 respectively.
