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Rupee strengthens against US dollar amid firm domestic equities

21 Dec 2021 Evaluate

Indian rupee strengthened against the US dollar on Tuesday, tracking positive domestic equities despite lingering uncertainties around the new Omicron coronavirus variant. Moreover, weakness in American currency in the overseas market also supported rupee sentiments. Although, sustained foreign fund outflows limited the rupee’s gain. Foreign Institutional Investors (FIIs) remained net sellers in the capital markets, pulling out Rs 3,565.36 crore on Monday, exchange data showed. On the global front, the US dollar hovered below recent highs following a blow to Democratic spending plans in Washington, while worries about the Omicron variant of corona-virus kept risk currencies in check.

The partially convertible currency is currently trading at 75.61, stronger by 29 paise from its previous close of 75.90 on Monday. The currency touched a high and low of 75.7475 and 75.6050 respectively.

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