Indian rupee appreciated against US dollar amid sustain foreign capital inflows. Foreign investors extended their buying streak to a ninth straight session on Monday, purchasing Indian equities worth Rs 2,474 crore. With the latest inflow, FIIs have now turned net buyers for April, reversing earlier heavy selling of nearly Rs 35,000 crore. Some support came as RBI is all set to inject more liquidity into the banking system through the purchase of Government bonds for an aggregate amount of Rs 1.25 lakh crore in May. The decision was taken after a review of current and evolving liquidity conditions. On the global front, Japanese yen strengthened against other major currencies in the Asian session on Tuesday, as traders awaited the Bank of Japan (BoJ) monetary policy decision due this week.
Finally, the rupee ended at 84.96 (Provisional), appreciated by 27 paise from its previous close of 85.23 on Monday. The currency touched a high and low of 85.40 and 84.96 respectively.
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