The rupee opened slightly lower against the greenback on Wednesday, as investors braced for caution ahead of the outcome of the Federal Open Market Committee meeting later in the day.
At 09:10 AM, the
rupee was trading at 69.08 a dollar, down 12 paise from its Tuesday’s close of 68.96. The home currency opened at 69.04 and touched a high and a low of 69.04 and 69.14 a dollar, respectively.
The Indian currency has been riding high on massive liquidity push in form of strong foreign fund inflows in March. Foreign institutional investors (FIIs) put in Rs 2,132.36 crore on a net basis on Tuesday, provisional data showed.
Globally, the dollar was range bound, as investors awaited the outcome of the Federal Reserve’s March policy meeting later in the day.
Many investors expect the Fed, which has raised rates four times last year, to keep its benchmark overnight interest rate unchanged and stick to its pledge of a “patient” approach to monetary policy, reported Reuters.
Against a basket of key rival currencies, the dollar was broadly steady at 96.388 after hitting its lowest level since March 1 at 96.291 in overnight trading.
In commodity markets, oil prices retreated from a four-month high, on concerns over global economic growth.
International Brent crude oil futures were at $67.50 a barrel at 0222 GMT, down 11 cents, or 0.2 percent, from their last close. Brent touched $68.20 a barrel on Tuesday, its highest since Nov. 16.
In debt markets, the
yields on the 10-year government bonds were down 0.12 percent to 7.37 percent from its previous close of 7.38 percent. Bond yields and prices move in opposite directions.
