Indian rupee strengthened against the US dollar on Tuesday tracking firm domestic equities and weak American currency at overseas markets. Foreign Institutional Investors (FIIs) were net sellers in the capital market, on Monday, as they offloaded shares worth Rs 409.43 crore, exchange data showed. However, political turmoil in Russia and the US Federal Reserve's hawkish outlook makes investors cautious and limited further gains in rupee.
The partially convertible currency is currently trading at 81.9650, stronger by 8 paise from its previous close of 82.0425 on Monday. The currency touched a high and low of 82.02 and 81.95 respectively.