Rupee strengthens against US dollar on Tuesday
The Indian rupee strengthened against the US dollar on Tuesday as foreign portfolio investors returned modestly to Indian equities after sweeping tax reforms announced by PM Narendra Modi. Foreign Institutional Investors bought equities worth Rs 550.85 crore on Monday, exchange data showed. Besides, suspected RBI intervention and cautious optimism around the Ukraine-Russia conflict also supported rupee sentiments. Markets are seeking direction this week from the US Federal Reserve's annual symposium in Jackson Hole on the likely path of interest rates. Fed Chair Jerome Powell is due to speak on the economic outlook and the Fed's policy framework. However, some gains were limited by caution on US President Donald Trump’s additional 25% tariffs on Indian goods, which are scheduled to take effect on Wednesday, August 27.
The partially convertible currency is currently trading at 87.23, stronger by 16 paise from its previous close of 87.39 on Monday. The currency touched a high and low of 87.3150 and 87.20 respectively.
