Rupee strengthens against US dollar on Tuesday
The Indian rupee strengthened against US dollar in early trade on Tuesday buoyed by a weaker American currency and strong industrial output data. Reports showed that India's industrial production growth, as measured by the Index of Industrial Production (IIP), surged to a 25-month high of 6.7% in November this year on an annual basis, significantly exceeding the market expectation of 2.5% and last month growth of 0.5%. However, some gains were limited by foreign fund outflows and marginally higher crude oil prices. Foreign institutional investors offloaded equities worth Rs 2,759.89 crore on Monday, exchange data showed. Meanwhile, investors are awaiting the Federal Reserve’s December meeting minutes, for further clues on the path of interest rates.
The partially convertible currency is currently trading at 89.96, stronger by 2 paise from its previous close of 89.98 on Monday. The currency touched a high and low of 89.98 and 89.89 respectively.
