Indian rupee strengthened against US dollar on Wednesday despite muted trend in domestic equities and unabated foreign fund outflows from capital market. Foreign Institutional Investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 1,003.56 crore on Tuesday, exchange data showed. Meanwhile, India's GDP for FY 2021-22 came in at 8.7% as compared to 7.30% in 2020-21. India's GDP for fourth quarter ended on March 31st was at 4.1% and it was largely in line with estimates. On the global front, US dollar rose to a two-week high against the yen, lifted by higher Treasury yields as global inflation worries flared anew. US Federal Reserve Governor Christopher Waller commented that the US central bank should be prepared to raise interest rates by 50 basis points at every meeting on until inflation is decisively controlled.
The partially convertible currency is currently trading at 77.53, stronger by 18 paise from its previous close of 77.71 on Tuesday. The currency touched a high and low of 77.6250 and 77.5350 respectively.
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