On Tuesday, the rupee was up 24 paise to close at 75.29 against the US dollar.
On Tuesday, the rupee was up 24 paise to close at 75.29 against the US dollar.
After its three-day winning streak, the rupee fell 47 paises to close at 75.76 (prelim) against the US dollar on Wednesday, following a strong US currency in overseas markets and a negative trend in domestic stocks.
Forex traders said expectations of rate hikes by the US Federal Reserve to curb decades-long inflation are keeping the dollar index buoyant, a key headwind for the Indian rupee.
In the interbank FX market, the rupee opened at 75.50 against the US currency but lost ground to settle at 75.76, down 47 paise from the previous close.
On Tuesday, the rupee was up 24 paise to close at 75.29 against the US dollar.
Meanwhile, the Dollar Index, which gauges the dollar’s strength against a basket of six currencies, traded 0.04% higher to 99.51.
Global oil benchmark Brent crude futures rose 1.55% to $108.29 a barrel.
According to Dilip Parmar, research analyst at HDFC Securities, the rupee ended its winning streak and was the worst performer among Asian currencies as Fed officials discussed balance sheet trimming along with rate hikes.
Aggressive tone from US Fed members pushed risk assets lower, while dollar and bond yields surged to multi-month highs.
“Ahead of RBI policy decision, USD/INR is likely to trade in the 75.30-76 range,” noted Mr. Parmar.
On the domestic stock market front, the 30-piece Sensex ended 566.09 points, or 0.94%, lower at 59,610.41, while the broader NSE Nifty fell 123.70 points, or 0.69%, to 17,833.70.
Foreign institutional investors remained net buyers in the capital market on Tuesday as they bought £374.89 billion worth of shares, according to stock market data.
