Rupee strengthens against US dollar on Monday
The Indian rupee strengthened against the US dollar on Monday as investors watching the progress on the proposed India-US trade deal as well as the domestic PMI data to be released later this week. Meanwhile, investors are also awaiting the release of a slew of US economic data following the ending of the government's shutdown, hoping it will provide clues on the Federal Reserve's interest rate outlook in December. Moreover, firm domestic equities, lower crude oil prices and cooling inflation data have also supported rupee sentiments. Data on Friday showed that India’s wholesale price inflation fell to a 27-month low of -1.21% in October after coming in at 0.13% the previous month, led by a sharp deflation in food items like pulses and vegetables, and lower prices of fuel and manufactured items. However, a firm American currency and relentless outflow of foreign capital have limited further gains in the rupee. Foreign institutional investors sold equities worth Rs 4,968.22 crore on Friday, exchange data showed. The RBI said foreign exchange reserves dropped by another $2.699 billion to $687.034 billion during the week ended November 7.
The partially convertible currency is currently trading at 88.61, stronger by 5 paise from its previous close of 88.66 on Friday. The currency touched a high and low of 88.73 and 88.5675 respectively.
