Rupee strengthens against US dollar on Wednesday
Indian rupee strengthened against the US dollar on Wednesday amid softening crude oil prices and weak American currency at overseas market. Local unit got some comfort as an article in the RBI's May Bulletin released on Tuesday showed that India is likely to grow by 7.5% in the first quarter of the current financial year, driven by rising aggregate demand and non-food spending in the rural economy. However, gains in rupee remained capped amid foreign fund outflows. Foreign Institutional Investors were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 1,874.54 crore, exchange data showed. Meanwhile, investors are awaiting the minutes of the Fed's last meeting.
The partially convertible currency is currently trading at 83.23, stronger by 8 paise from its previous close of 83.31 on Tuesday. The currency touched a high and low of 83.2975 and 83.22 respectively.
