Rupiah weak for a second consecutive day, down 5 paises against the US dollar

The rupee depreciated by almost 5 points against the US dollar at the opening of the markets on Wednesday

The rupee weakened for the second consecutive session, falling from nearly 5 points to 68.87 against the US dollar on Wednesday. Increased demand for the US dollar and the strength of the dollar against some foreign currencies had an impact on the rupee's movement. In addition, constant outflows of foreign funds and the intensification of US-Chinese trade also weighed on the rupee. On Tuesday, the rupee closed at 68.82 against the greenback, down 10 points.

Around 10 am Wednesday, the national currency was trading at 68.83 against the US dollar, according to Bloomberg data. Preliminary stock market data showed that foreign portfolio investors (REITs) sold shares worth Rs 20.73 crore on Tuesday and Rs 569.91 crore on Monday. In contrast, domestic institutional investors bought shares worth Rs 293.96 crore. Meanwhile, the Senbad dropped nearly 70 points to a low of 36,169.70 points on Wednesday morning.

"Today, the USDINR is expected to remain in the range of 68.58 (68.41) to 69.02 (69.26) .And another set of US import trade tariffs on China – this time it said it would charge 10% tariffs on an additional $ 200 billion of Chinese imports.The Asian markets, namely Nikkei and HangSeng, both fell by 293 and 450 points respectively, to the exception of DOW which closed up 143 points due to the new pre-tariff, "said Portia Advisory Services LLP in a note." Overall, Indian domestic markets would track global markets , as SGX Nifty Fut shows that is down 38 points and the USDINR's NDF is 68.76 (compared to the close of yesterday's 68.81). Brent Crude is currently at $ 78.08 a barrel. CPI (Jun) and IIP (May) YoY data from India will be released tomorrow (after market hours) – both are expected to rise, "the note added.