Indian rupee strengthened against the US dollar on Monday in line with positive domestic equities, despite fund outflows from the FIIs. Foreign Institutional Investors (FIIs) were net sellers in the capital markets, as they offloaded shares worth Rs 3,260.05 crore on Friday, exchange data showed. Although, the country's foreign exchange reserves declined by $2.234 billion to $550.871 billion for the week ended September 9, RBI said on Friday. Prospect of more interest rate hikes by US Federal Reserve and fears of a global recession adding pressure on rupee sentiments and capped further gains in rupee.
The partially convertible currency is currently trading at 79.65, stronger by 13 paise from its previous close of 79.78 on Friday. The currency touched a high and low of 79.7325 and 79.5900 respectively.