Rupee strengthens marginally against US dollar on Wednesday
Indian rupee strengthened marginally against US dollar on Wednesday, tracking most of the Asian currencies’ gains ahead of a key US inflation report that could guide expectations for Federal Reserve interest rate cuts. Moreover, positive trend in domestic equities, weak American currency at overseas markets and mild dollar sales from foreign banks have also aided rupee sentiments. Meanwhile, Moody's Ratings said the Indian economy is projected to expand 6.6% in the current fiscal year. However, sustained foreign fund outflows restricted further gains in rupee. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 4,065.52 crore, exchange data showed.
The partially convertible currency is currently trading at 83.50, stronger by 1 paisa from its previous close of 83.51 on Tuesday. The currency touched a high and low of 83.5125 and 83.4725 respectively.
