Rupee strengthens against US dollar on Tuesday
Indian rupee strengthened against the US dollar in early trade on Tuesday, followed by firm domestic equities and foreign fund inflows. Foreign Institutional Investors were net buyers in the capital markets on Monday, as they purchased shares worth Rs 2,684.78 crore, exchange data showed. India's merchandise exports in June increased 2.56% to $35.2 billion, even as the trade deficit widened to $20.98 billion during the month, data showed. Rupee improved further as Federal Reserve Chair Jerome Powell’s dovish comments fuelled expectations for an interest rate cut in September and as Donald Trump’s victory in the forthcoming elections increased. However, some gains were limited by firm American currency at overseas markets and dollar demand from local importers.
The partially convertible currency is currently trading at 83.59, stronger by 2 paise from its previous close of 83.61 on Monday. The currency touched a high and low of 83.6050 and 83.5675 respectively.
