Indian rupee strengthened against the US dollar on Wednesday, tracking gains in domestic equity markets and foreign fund inflows. Foreign Institutional Investors (FIIs) bought shares worth Rs 1,101.76 crore on a net basis on Tuesday, exchange data showed. Though, strong American currency overseas weighed on investor sentiment. Meanwhile, the Monetary Policy Committee of the Reserve Bank will begin its three-day deliberations on Wednesday after the government appointed three external members to the rate-setting panel. On the global front, the US dollar held gains against most currencies after US President Donald Trump said he instructed his administration’s negotiators to stop corona virus stimulus negotiations with Democrats until after the presidential election, heightening demand for safe-haven assets.
The partially convertible currency is currently trading at 73.39, stronger by 7 paise from its previous close of 73.46 on Tuesday. The currency touched a high and low of 73.5575 and 73.3800 respectively. The reference rate for the dollar stood at 73.26 and for Euro stood 85.90 on October 05, 2020. While the reference rate for the Yen stood at 69.38, the reference rate for the Great Britain Pound (GBP) stood at 94.69.
