Rupee strengthens against US dollar on Tuesday
Indian rupee strengthened against the US dollar on Tuesday on the back of retreating American currency after reports that Donald Trump’s incoming economic team is considering gradual hikes in tariffs. Rupee sentiments improved further by firm domestic equities after India’s retail inflation declined to a four-month low of 5.22% in December as compared to 5.48% in the previous month. While, easing crude oil prices has also supported sentiments. Although, some gains were limited with caution as traders scaled back expectations for Federal Reserve rate cuts this year, driven by a stronger-than-expected jobs report. Foreign Institutional Investors offloaded equities worth Rs.4,892.84 crore on Monday, exchange data showed.
The partially convertible currency is currently trading at 86.55, stronger by 15 paise from its previous close of 86.70 on Monday. The currency touched a high and low of 86.5950 and 86.45 respectively.
