Indian rupee weakened against the US dollar on Thursday, tracking massive selloff in domestic equities and foreign fund outflows. Foreign Institutional investors (FIIs) sold shares worth Rs 1,951.90 crore, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 612.80 crore in the Indian equity market on Wednesday, exchange data showed. Moreover, lingering concerns over surging corona virus cases in some parts of the world too weighed on investor sentiments. Reports showing that India saw the biggest single-day jump in total infections in nearly five months as two states - Maharashtra and Gujarat - saw the highest-single day spike since the start of the pandemic. On the global front, the US dollar remained broadly stronger following a two-day rally amid worries ranging from Europe's third Covid-19 wave along with potential tax hikes in the United States.
The partially convertible currency is currently trading at 72.59, weaker by 4 paise from its previous close of 72.55 on Wednesday. The currency touched a high and low of 72.6875 and 72.5800 respectively. The reference rate for the dollar stood at 72.29, and for Euro stood 86.21 on March 23, 2021. While the reference rate for the Yen stood at 66.48, the reference rate for the Great Britain Pound (GBP) stood at 100.00.