Rupee weakens against US dollar on weak macroeconomic numbers

Indian rupee weakened against the US dollar on Monday due to muted domestic equities, following weak macroeconomic numbers weighed on investor sentiments.

The rising food prices boosted the retail inflation in November to over three-year high of 5.54 per cent while the industrial sector output contracted for third month in a row by 3.8 per cent in October. Though weakening of the US dollar against other currencies overseas and easing crude oil prices and foreign fund inflows have strengthened the domestic unit and restricted its down move. Foreign institutional investors (FIIs) purchased shares worth Rs 115.70 crore on December 13, exchange data showed.

On the global front, currencies made a muted response to the Sino-US trade deal, as the last week’s brief relief that an agreement had been reached, was replaced by frustration at a lack of concrete details on the agreement and a reluctance to make big bets, as Christmas draws near.

The currency touched a high and low of 70.9850 and 70.7500, respectively. The reference rate for the dollar stood at 70.71 and Euro stood at 78.97 on December 13, 2019. Meanwhile the reference rate for the Yen stood at 64.53 and that of the Great Britain Pound (GBP) stood at 95.27.