Indian rupee weakened against the US dollar on Wednesday as the American currency strengthened against a basket of most major currencies overseas, while the 10-year yields on US Treasuries slipped as US Federal Reserve Chairman Jerome Powell told Congress inflation will not get out of hand. Moreover, selloff in domestic equities, foreign fund outflows and rising crude prices also weighed on domestic currency. Foreign institutional investors (FIIs) sold shares worth Rs 108.24 crore, while domestic institutional investors (DIIs) were also net sellers to the tune of Rs 529.69 crore in the Indian equity market on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 72.59, weaker by 16 paise from its previous close of 72.43 on Tuesday. The currency touched a high and low of 72.6850 and 72.5100 respectively. The reference rate for the dollar stood at 72.37, and for Euro stood 86.04 on March 22, 2021. While the reference rate for the Yen stood at 66.56, the reference rate for the Great Britain Pound (GBP) stood at 100.25.