Indian rupee strengthened against the US dollar on Wednesday, driven by weakness in the American currency overseas as market assessed the possibility of more US fiscal stimulus. Further, sustained foreign fund inflows too supported domestic currency. Foreign Institutional Investors (FIIs) bought shares worth Rs 2,349.53 crore, while Domestic Institutional Investors (DIIs) sold shares worth Rs 2,010.50 crore in the Indian equity market on Tuesday, exchange data showed. However, some gains were capped by volatility in domestic equities.
The partially convertible currency is currently trading at 73.29, stronger by 13 paise from its previous close of 73.42 on Tuesday. The currency touched a high and low of 73.3650 and 73.2600 respectively. The reference rate for the dollar stood at 73.58, and for Euro stood 89.94 on December 28, 2020. While the reference rate for the Yen stood at 71.12, the reference rate for the Great Britain Pound (GBP) stood at 99.84.
