Indian rupee strengthened against the US dollar on Wednesday, supported by firm domestic equities following foreign fund inflows into the capital markets. Foreign Institutional Investors (FIIs) were net buyers as they purchased shares worth Rs 2,116.60 crore in the capital market on Tuesday, exchange data showed. Further, weakness in American currency overseas and easing crude oil prices, also added support to rupee sentiment. Meanwhile, investors will be eyeing to cues from the Reserve Bank of India's monetary policy meeting this week. On the global front, the US dollar was pinned near recent lows against its major peers as traders awaited US jobs data for a guide to the rates outlook.
The partially convertible currency is currently trading at 74.14, stronger by 14 paise from its previous close of 74.28 on Tuesday. The currency touched a high and low of 74.1625 and 74.0800 respectively.