Indian rupee strengthened against the US dollar on Wednesday, despite volatility in domestic equities with reports of devastating second wave of Covid-19 pandemic. Meanwhile, foreign fund inflows and strong macroeconomic data supported rupee sentiment. Data showed India's Gross Domestic Product (GDP) surged by a record 20.1% in the first quarter of this fiscal compared to the 24.4% contraction recorded in the same quarter a year ago. Foreign Institutional Investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 3,881.16 crore on Tuesday, exchange data showed. On the global front, the US dollar traded near its lowest point in nearly three weeks versus major peers, with investors focused on a key US jobs report due on Friday for clues on when the US Federal Reserve might start reducing its stimulus measures.
The partially convertible currency is currently trading at 72.97, stronger by 3 paise from its previous close of 73.00 on Tuesday. The currency touched a high and low of 73.5000 and 72.9250 respectively.
