Rupee declined 8 paise to 79.82 against U.S. dollar

The rupee lost 8 paise to open at 79.82 against the U.S. dollar on Wednesday as traders awaited the U.S. Federal Reserve’s interest rate announcement for additional indications. The local currency, according to forex traders, suffered from the strength of the American dollar in international trade and a flat domestic equity market. Furthermore, the local unit was hampered by risk-off attitudes and high crude oil prices.

The rupee depreciated 8 paise from its previous level to start the day at 79.82 against the dollar on the interbank foreign exchange market. The local currency likewise reached 79.79 versus the dollar in the first transactions. The rupee ended the day on Tuesday seven paise higher at 79.74 to the dollar. The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.04 percent to 110.26. Global oil benchmark Brent crude futures rose 0.23 percent to $90.83 per barrel.

Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, stated that investors are anticipating the Federal Open Market Committee’s (FOMC) decision on interest rates this evening. He added that while the market has already priced in a 75 basis point increase, a 100 basis point increase would be a significant indication and would drive the dollar index higher.

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