Rupee weakens on strengthening of American currency overseas

Indian rupee weakened against US dollar on Friday amid strengthening of American currency in the overseas market. Further, weak domestic equities following the release of weaker-than-expected economic data too weighed on the domestic currency.

Moreover, a sharp rise in the number of Coronavirus cases in China, as thousand more were diagnosed due to a new testing methodology, also pressurised the rupee.

Though, easing crude oil prices and foreign fund inflows supported the domestic unit and restricted its fall. Foreign Institutional Investors (FIIs) bought shares worth Rs 1,061.39 crore on Thursday, exchange data showed.

On the global front, Japanese Yen gained against US dollar as renewed worries about Coronavirus outbreak supported the demand for safe-haven currencies and weighed on the prices of riskier assets.

The partially convertible currency is currently trading at 71.39, weaker by 13 paise from its previous close of 71.26 on Thursday. The currency touched a high and low of 71.3950 and 71.2900 respectively. The reference rate for the dollar stood at 71.25 and for Euro, it stood at 77.73 on February 12, 2020. While the reference rate for Yen stood at 64.86, the reference rate for Great Britain Pound (GBP) stood at 92.31.