Indian rupee strengthened against the US dollar on Tuesday tracking firm domestic equities and fund inflows by FIIs. Foreign Institutional Investors (FIIs) turned net buyers in the capital markets, as they purchased shares worth Rs 312.31 crore on Monday, exchange data showed. Although, the market has expected the US Federal Reserve would hike the interest rate by 75 basis points on Wednesday in an effort to control inflation, which has hit a 40-year high. Apart from this, the Reserve Bank of India has also expected to hike interest rates by 50 basis points at its upcoming policy review.
The partially convertible currency is currently trading at 79.68, stronger by 13 paise from its previous close of 79.81 on Monday. The currency touched a high and low of 79.72 and 79.58 respectively.