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Rupee strengthens on sustained foreign fund inflows

12 Dec 2019 Evaluate

Indian rupee strengthened against the US dollar on Thursday as sustained foreign fund inflows into the stock market strengthened investor sentiments. Foreign institutional investors (FIIs) remained net buyers in the capital market, as they purchased shares worth Rs 605.41 crore on Wednesday, exchange data showed. Rupee improved further as the domestic unit gained ground ahead of the release of key macro-economic numbers. Moreover, investors were optimistic about the Sino-US trade talks. On the global front, the US dollar weakened against a basket of major currencies after Federal Reserve Chairman Jerome Powell said it would take a significant pick-up in inflation to cause the Fed to raise rates.

The partially convertible currency is currently trading at 70.69, stronger by 16 paise from its previous close of 70.85 on Wednesday. The currency touched a high and low of 70.7150 and 70.6400 respectively. The reference rate for the dollar stood at 70.89 and for Euro stood at 78.45 on December 10, 2019. While the reference rate for the Yen stood at 65.27, the reference rate for the Great Britain Pound (GBP) stood at 93.27.

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