The rupee weakened by 10 paise to 86.66 against the US dollar in early trading on Wednesday due to a strong American currency index ahead of the Federal Reserve’s interest rate decision and concerns over global trade tariffs.
Forex traders noted that the rupee received some support from falling crude oil prices and an influx of foreign capital into the domestic equity markets.
Opening at 86.60, the rupee slipped to 86.68 before settling at 86.66 against the dollar in initial trades, marking a 10 paise decline from the previous close.
On Tuesday, the rupee closed 25 paise higher at 86.56 against the US dollar, extending gains for the third consecutive session with a total increase of 66 paise.
The dollar index, which measures the greenback’s strength against a basket of other currencies, was up 0.09% at 102.98, as investors await the Federal Reserve’s interest rate decision.
Meanwhile, Brent crude, the global oil benchmark, was down 0.27% at $70.37 per barrel in futures trading.
In the domestic stock market, the BSE Sensex was up 30.78 points, or 0.04%, at 75,332.04, while the Nifty rose 12.95 points, or 0.06%, to 22,847.25. Both indices saw significant gains of over 1% in the previous session.
Foreign institutional investors (FIIs) bought equities worth Rs 694.57 crore on a net basis on Tuesday.
The article was published on March 19, 2025.
