Rupee weakens amid thin volumes on FII outflow, greenback rebound

Trade volumes were thin as US markets were closed for Martin Luther King Day

The rupee weakened sharply against the US dollar on Monday amid sparse trading volumes as some foreign banks purchased the greenback, likely on account of overseas investors exiting the domestic market, dealers said.

The domestic currency closed at 81.62 per US dollar versus 81.34 at previous close.

Banks purchasing the US currency on behalf of importers looking to lock in relatively lucrative levels after the recent sharp appreciation of the rupee also dragged the domestic currency lower on Monday, dealers said.

Trade volumes were thin on account of US markets being closed for Martin Luther King Day.

“Today was a