Early on Wednesday, the rupee lost 4 paise to 82.64 US cents against the US dollar as the foreign currency strengthened and investors were more risk-averse in anticipation of the US Federal Reserve’s interest rate announcement.
The home currency was supported, nonetheless, by a strong trend in domestic equities, according to FX dealers.
The local unit at the interbank foreign exchange started out flat against the dollar at 82.60 before losing some ground to quote at 82.64, reflecting a loss of 4 paise from its previous closing.
The rupee was trading in a narrow range between 82.60 and 82.65 in the early trades.
The rupee ended Tuesday’s previous session 9 paise worse against the US dollar at 82.60.
The dollar index, which measures the value of the dollar against a basket of six different currencies, rose 0.11 percent to 104.09.
The benchmark for world oil, Brent crude futures, dropped 0.33 percent to USD 80.41 a barrel.
The 30-share BSE Sensex was trading 238.75 points, or 0.38 percent, higher at 62,772.05. This was on the domestic equity market. The NSE Nifty index as a whole gained 59.40 points, or 0.32 percent, to 18,667.40.
The US Federal Reserve may be less hawkish in raising interest rates after the US inflation rate for November was reported at 7.1% annually compared to an increase of 7.7% in October. On Wednesday, the Fed is generally anticipated to increase its benchmark rate by 0.50 percentage points.
According to exchange data, Foreign Institutional Investors (FIIs) changed from net sellers to purchasers on Tuesday by purchasing shares worth Rs 619.92 crore.
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