Indian rupee strengthened against the US dollar on Wednesday tracked by rally in domestic equity market following positive macroeconomic data showed India’s Industrial production grew 11.9% in August, while Retail inflation cooled off to a five-month low of 4.35% in September from 7.27% in the year-ago period. Further, lower crude prices and a weak American currency in overseas markets also boosted rupee sentiment. However, sustained foreign fund outflows from domestic markets capped further gains in rupee. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 278.32 crore on Tuesday, exchange data showed. On the global front, the US dollar eased back from a one-year high against its major rivals ahead of US consumer price data that could provide additional clues on when the US central bank will taper stimulus and raise interest rates.
The partially convertible currency is currently trading at 75.44, stronger by 8 paise from its previous close of 75.52 on Tuesday. The currency touched a high and low of 75.4500 and 75.2450 respectively.
