Rupee strengthens against US dollar on Tuesday
The Indian rupee strengthened against the US dollar on Tuesday due to optimism from easing of tensions between India and Pakistan as well as the US-China trade deal. The US and China announced they will temporarily lower tariffs on each other’s products, with the US reducing its levies on most Chinese imports from 145% to 30% and China lowering its duties on US goods from 125% to 10% for 90 days. Moreover, foreign fund inflows into the Indian capital market also supported rupee sentiments. Foreign institutional investors bought shares worth 1,246.48 crore, while Domestic institutional investors were net buyers to the tune of Rs 1,448.37 crore in the Indian equity market on Monday, exchange data showed. The forex market was closed on Monday on account of Buddha Purnima.
The partially convertible currency is currently trading at 84.91, stronger by 45 paise from its previous close of 85.36 on Friday. The currency touched a high and low of 84.9725 and 84.6250 respectively.
