Rupee weakens on demand for US dollar

The Indian rupee weakened against the US dollar on account of fresh demand for the US currency from importers. 

Moreover, strength in the dollar against some currencies overseas and weak domestic equities kept the pressure on the domestic currency. The escalating tensions between India and Pakistan added to the pressure on the FOREX market. News reports on Tuesday morning said that the Indian Airforce carried out aerial strikes at major terror camps in Pakistan occupied Kashmir, 12 days after the Pulwama attack, where a convoy of troops was targeted by a suicide bomber killing 40 army men. 

The rupee closed at 70.97, 17 paise up against the US dollar on Monday. This was in-line with most of the Asian currencies on the hopeful note that US and China will reach an agreement to settle their trade tariff issues. The partially convertible currency is currently trading at Rs. 71.03 against the dollar. The currency touched a high of 71.35 and a low of 70.98 during the first half of the trading session. 

The reference rate for the dollar stood at Rs. 71.04 per dollar on February 25. Meanwhile, the benchmark index BSE Sense feel by over 235 points or 0.65 per cent at 35,978.25 level at around noon.