Rupee slips 10 paise to 86.66 against US dollar amid fed rate decision, trade concerns
Forex traders noted that the local currency received support from declining crude oil prices and an influx of foreign capital into domestic equity markets. At the interbank foreign exchange, the rupee opened weaker at 86.60, dropped to 86.68, and was trading at 86.66 against the US dollar in early transactions, marking a 10-paise decline from its previous close.
Mumbai: The rupee declined 10 paise to 86.66 against the US dollar in early trade on Wednesday amid a firm American currency index ahead of the Federal Reserve’s interest rate decision and prevailing concerns due to global trade tariff moves.
Forex traders said the local currency found cushion due to easing crude oil prices and some inflow of foreign capital in domestic equity markets.
At the interbank foreign exchange, the rupee opened weak at 86.60 and fell to 86.68 before trading at 86.66 against the greenback in initial deals, registering a loss of 10 paise from its previous closing level.
Rupee settled 25 paise higher at 86.56 against the US dollar on Tuesday, gaining for the the third straight session during which it added 66 paise.
The unit had appreciated 24 paise to close at 86.81 against the US dollar on Monday after ending 17 paise up at 87.05 in the preceding session on Thursday.
Forex market was closed on Friday on the occasion of Holi festival.
Meanwhile, the US dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent higher at 102.98.
Analysts said the dollar index showed a recovery as market participants were awaiting cues from the US Federal Reserve’s interest rate decision to be announced on Wednesday.
Brent crude, the global oil benchmark, was trading 0.27 per cent lower at USD 70.37 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex was trading 30.78 points, or 0.04 per cent, higher at 75,332.04 points, while the Nifty was up 12.95 points, or 0.06 per cent, at 22,847.25 points. Both the indices ended Tuesday’s session with sharp gains of more than 1 per cent.
Foreign institutional investors (FIIs) purchased equities worth Rs 694.57 crore on a net basis on Tuesday, according to exchange data.
