Rupee strengthens against US dollar on Monday

Indian rupee strengthened against US dollar on Monday amidst foreign fund inflows in the market. The exchange data showed that the Foreign Institutional Investors (FIIs) bought shares worth Rs 264.26 crore on Friday.

The rising crude oil prices globally affected weak domestic equities. Apart from this, the tension between West Asia and North Africa weighed on the rupee and capped its gains.  

National Oil Corporation (NOC) said that two major oilfields in southwest Libya started shutting down after forces loyal to Khalifa Haftar closed a pipeline, potentially decreasing national output to a fraction of its normal level.

On the global front, US dollar strengthened as economic data pointed to strength right across the US economy, reducing the likelihood of any further interest rate cuts by the Federal Reserve. US homebuilding rose to a 13-year high last month as activity improved across the board, while production at factories improved for a second straight month, data showed on Friday.

The partially convertible currency is currently trading at 71.05, stronger by 3 paise from its previous close of 71.08 on Friday. The currency touched a high and low of 71.12 and 71.0375, respectively.