New Delhi: The rupee depreciated 3 paise to close at 82.59 against the US dollar on Tuesday ahead of the much-awaited decision by the US Federal Reserve on key policy rate. Forex dealers said rising crude prices and unabated foreign fund outflows weighed on the local unit, while a weak US dollar and gains in domestic equities ahead of the interest rate decision supported the rupee sentiment.
Investors are eagerly awaiting the interest rate decision by the US Federal Reserve on Wednesday. ,Also read: Best Pension System In World: These countries top the list, check India’s ranking,
The US dollar weakened against a basket of global currencies amid expectations that the Federal Reserve and the Bank of England will raise rates by much or not at all due to the banking crisis. ,ALSO READ: Unlike global economy, India will not slow down: RBI article,
At the interbank foreign exchange, the domestic unit opened higher at 82.54 against the dollar. During the day, it moved up to 82.53 and touched a low of 82.70. It finally closed at 82.59 against the American currency, registering a decline of 3 paise over its previous close.
On Monday, the rupee had closed at 82.56 against the US dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, retreated from earlier highs and traded down 0.23 per cent at 103.09.
Global oil benchmark Brent crude futures rose 0.98 per cent to $74.51 a barrel. The 30-share BSE Sensex ended 445.73 points or 0.77 per cent higher at 58,074.68, while the broader NSE Nifty jumped 119.10 points or 0.70 per cent to close at 17,107.50 to reclaim the 17,100-level.
Foreign institutional investors (FIIs) remained net sellers in the domestic capital market on Tuesday, selling shares worth Rs 1,454.63 crore, according to exchange data.