Rupee strengthens against US dollar on Tuesday
Indian rupee strengthened against the US dollar on Tuesday on account of heavy intervention from the Reserve Bank of India. However, some gains were limited by firm American currency following US President Donald Trump’s announcement of 25% tariffs on steel and aluminium imports. Weak domestic equities and foreign fund outflows in line with caution ahead of US Federal Reserve Chair Powell’s Congressional hearings today and upcoming US inflation data have kept rupee under pressure to some extent. Foreign Institutional Investors offloaded equities worth Rs 2,463.72 crore in the capital markets on a net basis on Monday, exchange data showed.
The partially convertible currency is currently trading at 86.86, stronger by 59 paise from its previous close of 87.45 on Monday. The currency touched a high and low of 87.46 and 86.6150 respectively.
