Rupee weakens against US dollar in early trade on Tuesday
The Indian rupee weakened against the US dollar in early trade on Tuesday, as month-end and quarter-end demand for dollars from importers and corporates added pressure on the domestic unit. Besides, a firmer American currency overseas and expectations of sustained higher interest rates in the United States diminished rupee sentiment. Moreover, continued geopolitical uncertainty and supply concerns at the Strait of Hormuz are keeping the rupee under severe pressure. Meanwhile, Foreign institutional investors (FIIs) sold equities worth Rs 1,350.1 crore on a net basis on Monday, exchange data showed. Although, losses were limited after US Ambassador to India Sergio Gor stated that the US-India trade deal is in its final steps, with only the last one percent of negotiations remaining. He expressed confidence that the deal would soon be sealed after nearly 18 months of talks.
The partially convertible currency is currently trading at 94.54, weaker by 3 paise from its previous close of 94.51 on Monday. The currency touched a high and low of 95.55 and 94.52 respectively.
.jpg)
