Rupee strengthens on bouts of dollar-selling from banks, exporters
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In early trade, Indian rupee strengthened against the US dollar on Wednesday on bouts of dollar-selling amid positive domestic equities and a pullback in crude oil prices. Traders took encouragement with the Ministry of Finance’s statement that the Indian economy is well prepared to handle any capital outflows caused by external shocks. In its Monthly Economic Review report released the finance ministry's Department of Economic Affairs said India has adequate foreign exchange reserves to absorb the risks posed by the uncertain geopolitical environment. Meanwhile, foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 1,249.74 crore, as per stock exchange data. On the global, dollar traded near a five-year high against the yen on Wednesday as investors awaited a Federal Reserve policy decision, with the Ukraine war and China's surging COVID-19 cases as the backdrop.
The partially convertible currency is currently trading at 76.41, stronger by 21 paise from its previous close of 76.62 on Tuesday. The currency touched a high and low of 76.44 and 76.32 respectively.
