Rupee strengthens against US dollar in early trade on Tuesday
The Indian rupee strengthened against US dollar in early trade on Tuesday, supported by the Reserve Bank of India’s (RBI) latest measures aimed at reducing immediate dollar demand and curbing excessive positions in the foreign exchange market. Rupee improved further by eased crude oil prices, while market participants focused on upcoming ?US inflation prints for fresh signals on the Federal Reserve's interest-rate trajectory. However, foreign fund outflows and a faster-than-expected rise in retail inflation have limited the rupee's gain. Data showed that India's retail inflation accelerated to 5.54% in September, moving closer to the RBI's 6% upper tolerance limit. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,708.48 crore on a net basis on Monday, exchange data showed.
The partially convertible currency is currently trading at 95.27, stronger by 51 paise from its previous close of 95.78 on Monday. The currency touched a high and low of 95.53 and 94.96 respectively.
