Rupee strengthens against US dollar in early trade on Tuesday
The Indian rupee strengthened against the US dollar in early trade on Tuesday, even as the uncertainty surrounding West Asia and unprecedented foreign fund outflows pressured markets. Foreign institutional investors offloaded equities worth Rs 3,911.68 crore on a net basis on Monday, exchange data showed. Rupee’s gains supported by India's robust macroeconomic fundamentals. Data showed India's industrial production expanded by 4.9% YoY in April 2026, and manufacturing output grew 6.2%. Data from the Controller General of Accounts showed the government successfully met its fiscal deficit target of 4.4% of GDP for FY26, exactly matching its budget estimate. Meanwhile, market participants are now turning their attention to the RBI policy decision scheduled for June 5 as well as critical US employment data and ongoing trade dialogues between India and the United States.
The partially convertible currency is currently trading at 95.15, stronger by 4 paise from its previous close of 95.19 on Monday. The currency touched a high and low of 95.1825 and 95.03 respectively.
