Rupee strengthens against US dollar on Monday
Indian rupee strengthened against the US dollar on Monday amidst firm domestic equities and sustained foreign fund inflows into capital market. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth Rs 3,632.30 crore, exchange data showed. Meanwhile, on Friday, the RBI had kept the repo rate unchanged at 6.5% and retained the retail inflation projection for the current fiscal at 5.4%. The latest RBI data showed that India's foreign exchange reserves increased to $604 billion as on December 1, surpassing the $600 billion-mark after a gap of about four months. However, investors are cautious ahead of monetary policy decisions from US Federal Reserve and other central banks to be announced this week.
The partially convertible currency is currently trading at 83.38, stronger by 2 paise from its previous close of 83.40 on Friday. The currency touched a high and low of 83.3975 and 83.3750 respectively.
