Indian rupee strengthened against the US dollar on Tuesday, tracking firm trend in domestic equities amid sustained foreign fund inflows. Foreign Institutional Investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 1,419.31 crore on Monday, exchange data showed. Also, government data showed that subdued prices of food items like vegetables pulled down the retail inflation for the third month in a row to 5.3 percent in August, within the Reserve Bank of India's comfort zone. Meanwhile, investors looked to US inflation data due later today for clues on the timing of policy tightening by the Federal Reserve. However, rising crude oil prices dampened the rupee sentiments.
The partially convertible currency is currently trading at 73.63, stronger by 5 paise from its previous close of 73.68 on Monday. The currency touched a high and low of 73.6500 and 73.5950 respectively.
