Rupee strengthens against US dollar on Wednesday
Indian rupee strengthened against the US dollar on Wednesday after as weaker-than-expected US retail sales data reinforced expectations of an early rate cut by the Federal Reserve. Moreover, sustained foreign fund inflows into capital market also added support to local currency. Foreign Institutional Investors were net buyers in the capital markets on Tuesday, as they purchased shares worth Rs 2,569.40 crore, exchange data showed. Rupee improved further after data showed, with a positive sign of a robust economy and strong corporate performance, net direct tax collection grew 21% to Rs 4.62 lakh crore so far this fiscal on higher advance tax mop-up. However, a stronger American currency and higher crude oil prices overseas, limited further gains in rupee.
The partially convertible currency is currently trading at 83.36, stronger by 7 paise from its previous close of 83.43 on Tuesday. The currency touched a high and low of 83.3950 and 83.3450 respectively.
