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Rupee strengthens against US dollar on Tuesday

02 Aug 2022 Evaluate
Indian rupee strengthened against the US dollar on Tuesday, supported by weakness in American currency against major peers overseas as investors continued to position for a less aggressive pace of US Federal Reserve interest rate hikes. Besides, foreign fund inflows and softening crude oil prices also supported rupee sentiment. Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday, purchasing shares worth Rs 2,320.61 crore, exchange data showed. Although, investors await Reserve Bank of India's monetary policy decision on Friday where a 35-50 basis points interest rate hike was expected.

The partially convertible currency is currently trading at 78.62, stronger by 44 paise from its previous close of 79.06 on Monday. The currency touched a high and low of 78.9600 and 78.4975 respectively.

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