Weakened by 27 paise, the Indian rupee was trading lower at 67.70 against the US dollar on fresh demands for the American currency from banks and importers. It closed at 67.43 against the foreign currency yesterday.
After renewed hopes of the US-North Korean summit taking place, the dollar gained, hovering closer to its 6-and-a-half month high. The US dollar index is measured against 6 major currencies: the Euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona and Swiss franc. Changes in these currencies also affect the dollar's value.
While the greenback currency may have benefited from the easing geopolitical tensions, the Euro was struggling at its 6-and-a-half month low as Italy's political condition worsens after an indication that its president could be leading the country towards another election.
Additionally, petrol prices were hiked across the country for the sixteenth straight day by 16 paise per litre on an average. Diesel prices in state capitals were also up by an average of 14 paise per litre.
Meanwhile, Indian stock markets open lower. BSE Sensex declined by 0.13 percent or 50 points to 35,115, whereas NSE's Nifty 50 fell by 0.15 percent or 16 points to 10,671.