The rupee depreciated by 10 paise to 86.66 against the US dollar in early trade on Wednesday, weighed down by a firm American currency ahead of the Federal Reserve’s interest rate decision and prevailing global trade tariff concerns.
Forex traders noted that the local unit, however, received some support from easing crude oil prices and foreign capital inflows into domestic equity markets.
At the interbank foreign exchange market, the rupee commenced on a weaker note at 86.60, declining further to 86.68 before stabilising at 86.66 against the greenback, reflecting a loss of 10 paise from the previous session’s close.
On Tuesday, the rupee had gained 25 paise to settle at 86.56 against the US dollar, marking its third consecutive session of appreciation, during which it had cumulatively advanced by 66 paise.
The domestic currency had strengthened by 24 paise to close at 86.81 on Monday, following a 17-paise gain to 87.05 in the preceding session on Thursday. The forex market remained closed on Friday in observance of the Holi festival.
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Meanwhile, the US dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.09 per cent to 102.98, as traders awaited cues from the Federal Reserve’s interest rate announcement later in the day.
Brent crude, the global oil benchmark, was down 0.27 per cent, trading at USD 70.37 per barrel in futures trade.
On the domestic front, the 30-share BSE Sensex was marginally up by 30.78 points, or 0.04 per cent, at 75,332.04, while the NSE Nifty edged higher by 12.95 points, or 0.06 per cent, to 22,847.25. Both indices had registered sharp gains exceeding 1 per cent in the previous session.
Foreign institutional investors (FIIs) were net buyers, purchasing equities worth Rs 694.57 crore on Tuesday, as per exchange data.
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