Rupee strengthens against US dollar in early trade on Wednesday
The Indian rupee strengthened against the US dollar in early trade on Wednesday amidst the US dollar’s weakness against its major peers overseas following new signs of weakness in the US economy. A weaker-than-expected US retail sales report showed consumer spending stalled in December, reinforcing the view that growth is slowing and supporting the case for policy easing. Meanwhile, investors are awaiting Wednesday's US non-farm payroll data and Friday's inflation figures for further cues on the Fed's monetary policy path. Moreover, continued foreign inflows and strong domestic earnings momentum, have also supported rupee sentiments. Foreign Institutional Investors were net buyers of equities worth Rs 69.45 crore, while Domestic Institutional Investors purchased equities worth Rs 1,174.21 crore, exchange data showed.
The partially convertible currency is currently trading at 90.54, stronger by 2 paise from its previous close of 90.56 on Tuesday. The currency touched a high and low of 90.62 and 90.4625 respectively.
