Indian rupee weakened against the US dollar on Tuesday as surging covid-19 cases globally and inflation fears following strong crude oil prices have weighed on rupee sentiment. Moreover, foreign fund outflows too adding pressure on rupee. Foreign Institutional Investors (FIIs) were net sellers as they offloaded shares worth Rs 338.43 crore in the capital market on Monday, exchange data showed. However, firm domestic equities and weakness in the American currency overseas capped losses in the domestic unit.
The partially convertible currency is currently trading at 74.33, weaker by 2 paise from its previous close of 74.31 on Monday. The currency touched a high and low of 74.3500 and 74.2500 respectively.