Rupee strengthens against US dollar on Wednesday
The Indian rupee strengthened against the US dollar on Wednesday, tracking firm domestic equities and positive macroeconomic data. India's retail inflation eased to a nearly six-year low of 3.16% in April from 3.34% in March, giving enough room for RBI to go for another round of rate cut in the June monetary policy review. Moreover, fall in crude oil prices and the US dollar index have also supported rupee sentiments. However, foreign fund outflows limited further gains in rupee. Foreign institutional investors offloaded equities worth Rs 476.86 crore on a net basis on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 85.31, stronger by 5 paise from its previous close of 85.36 on Tuesday. The currency touched a high and low of 85.52 and 85.05 respectively
