Indian rupee strengthened against the US dollar on Tuesday, tracking weakness in American currency against its major peers and sharp drop in crude oil prices, while foreign fund inflows also supported rupee sentiments. Foreign Institutional Investors (FIIs) were net buyers in the capital markets, as they purchased shares worth Rs 2,049.65 crore on Monday, exchange data showed. Although, retail inflation accelerated to 7 percent in August driven by high food and fuel costs. Meanwhile, investors are awaiting US CPI inflation data, which could influence the US Federal Reserve’s plans to hike interest rates.
The partially convertible currency is currently trading at 79.05, stronger by 48 paise from its previous close of 79.53 on Monday. The currency touched a high and low of 79.33 and 79.04 respectively.
