Indian rupee strengthened against the US dollar on Monday, tracking firm trend in domestic equities, despite unabated foreign capital outflows. Foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 1,092.40 crore on Friday, exchange data showed. India's industrial production growth expanded marginally to 3.2% in October due to the waning low base effect while mining, power and manufacturing sectors performed well. However, surging crude prices in the international market capped further gains in rupee. On the global front, US dollar held steady ahead of US Federal policy decision this week. The elevated rate of inflation in the United States fuelled fears that the Federal Reserve would accelerate the pace of tapering its asset purchases this week.
The partially convertible currency is currently trading at 75.72, stronger by 6 paise from its previous close of 75.78 on Friday. The currency touched a high and low of 75.7350 and 75.6300 respectively.
