Mumbai, India (BBN)- Indian rupee was trading strong at 67.56 on heavy capital inflows into the domestic equity market post Budget announcement.
Cheering Budget proposals of infusing Rs. 10,000 crore in public sector banks and keeping the long-term capital gains tax unchanged for the capital markets, the benchmark Sensex regained the 28,000-mark by soaring nearly 500 points Wednesday, reports The Hindu Business Line.
Also, sustained dollar selling by banks and exporters and dollar’s weakness against a basket of other currencies overseas gave the domestic currency more muscle.
The rupee opened strong at 67.64 against the previous close of 67.87 at the Interbank Foreign Exchange market today.
The domestic unit hovered in a range of 67.68 and 67.52 before quoting at 67.56, up 31 paisa at 4.25pm local time.
The dollar sagged against its major peers on Wednesday after US President Donald Trump and his top economics adviser took aim at the currency policies of key US trade partners, further raising concern that Washington was poised to actively weaken the greenback.
Trump and trade adviser Peter Navarro had on Tuesday criticised Germany, Japan and China, saying the three key US trading partners were engaged in devaluing their currencies to US disadvantage.