Rupee strengthens against US dollar on Tuesday
The Indian rupee strengthened against the US dollar on Tuesday amid a weaker American currency overseas and a dip in global crude oil prices. Meanwhile, investors awaited Tuesday's US Consumer Price Index data and the Producer Price Index report on Wednesday for clues into the US Federal Reserve's potential policy path. Some support came with firm domestic equities and a sharper-than-expected fall in domestic inflation to its lowest level in over six years. However, foreign fund outflows and continuing uncertainty over the outcome of the India-US trade talks prevented a rise in the domestic currency. Foreign institutional investors sold equities worth Rs 1,614.32 crore on a net basis on Monday, exchange data showed.
The partially convertible currency is currently trading at 85.85, stronger by 7 paise from its previous close of 85.92 on Monday. The currency touched a high and low of 85.9750 and 85.81 respectively.
