Rupee weakens against US dollar in early trade on Wednesday
The Indian rupee weakened against the US dollar in early trade on Wednesday as investors reacted to the Reserve Bank of India's Monetary Policy Committee (MPC) decision to hike the repo rate by 25 bps to 5.50%. Meanwhile, investors remain cautious ahead of the release of Federal Reserve minutes and speeches by its policymakers for signals on potential rate hike. Moreover, a spike in crude oil prices, persistent outflows of foreign funds from domestic equities, and a stronger American currency also weighed on the domestic currency. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,961.30 crore on a net basis on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 96.57, weaker by 22 paise from its previous close of 96.35 on Tuesday. The currency touched a high and low of 96.5750 and 96.34 respectively.
