Indian rupee strengthened against the US dollar on Wednesday despite heavy selling in the domestic equity market with foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded shares worth Rs 765.30 crore, while Domestic Institutional Investors (DIIs) were also net sellers to the tune of Rs 387.76 crore in the Indian equity market on Monday, exchange data showed. Meanwhile, investors are awaiting the outcome of the US central bank's meeting. Investors are also keenly watching progress on the US stimulus front. Forex markets were closed on Tuesday on account of Republic Day. On the global front, the US dollar held declines against riskier currencies, with pandemic recovery hopes getting a boost as the International Monetary Fund upgraded its forecast for 2021 global growth.
The partially convertible currency is currently trading at 72.85, stronger by 9 paise from its previous close of 72.94 on Monday. The currency touched a high and low of 72.9175 and 72.8500 respectively. The reference rate for the dollar stood at 72.92, and for Euro stood 88.81 on January 25, 2021. While the reference rate for the Yen stood at 70.32, the reference rate for the Great Britain Pound (GBP) stood at 100.02.
