Indian rupee strengthened against the US dollar on Monday tracking positive domestic equities, despite the Reserve Bank of India’s monetary policy decision later this week. However, sustained foreign fund outflows and strengthening American currency at overseas market limited further gains in rupee. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 556.32 crore, exchange data showed. Meanwhile, India's forex reserves dropped by $3.165 billion to $603.87 billion in the week ended July 28, the RBI said. Investors are cautious ahead of a slew of key US and Chinese inflation figures due later this week.
The partially convertible currency is currently trading at 82.73, stronger by 8 paise from its previous close of 82.81 on Friday. The currency touched a high and low of 82.76 and 82.71 respectively.