Indian rupee strengthened against the US dollar on Tuesday, due to fresh selling of the American unit by exporters and banks and a fall in global crude oil prices. Though, wholesale price inflation accelerated to over 4-year high of 5.77% in June on increasing prices of vegetables and fuel items. This has upped chances of rate hike by the Reserve Bank of India (RBI) in its monetary policy review next month. On the global front, the dollar pared gains against its major peers on Tuesday, edging lower as investors awaited Federal Reserve Chairman Jerome Powell’s first congressional testimony for any clues on the pace of US interest rate rises.
The partially convertible currency is currently trading at 68.44, stronger by 14 paise from its previous close of 68.58 on Monday. The currency touched a high and low of 68.4575 and 68.3550 respectively.
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