Rupee strengthens against US dollar on Wednesday
The Indian rupee strengthened against the US dollar on Wednesday, due to expectations of a 25-basis-point rate cut by US Fed along with sustained foreign fund inflows in the Indian capital market. Foreign Institutional Investors purchased equities worth Rs 308.32 crore on Tuesday, exchange data showed. The rupee sentiment was also buoyed by lower crude oil prices and easing trade tensions between between India and the United States. On Tuesday, the U.S. described talks between its chief trade negotiator, Brendan Lynch, and his Indian counterpart Rajesh Agrawal for a proposed bilateral trade deal as ‘positive’. However, strong American currency restricted the gains in rupee.
The partially convertible currency is currently trading at 87.76, stronger by 33 paise from its previous close of 88.09 on Tuesday. The currency touched a high and low of 87.86 and 87.71 respectively.
