Rupee strengthens against US dollar in early trade on Tuesday
The Indian rupee strengthened against the US dollar in early trade on Tuesday, even after US President Donald Trump threatened to impose fresh tariffs on India's rice exports to the United States. Investors are awaiting the US Federal Reserve’s decision on December 10, while India and the United States are set to begin three-day trade talks in New Delhi on December 10 to finalise the first phase of their proposed bilateral trade agreement. Moreover, weakness in the American currency index supported the domestic currency. However, dollar demand from importers and continuous foreign fund outflows have limited further gains in the rupee. Foreign Institutional Investors sold equities worth Rs 655.59 crore on Monday, exchange data showed.
The partially convertible currency is currently trading at 89.96, stronger by 9 paise from its previous close of 90.05 on Monday. The currency touched a high and low of 90.15 and 89.92 respectively.
