Rupee opens marginally lower at 83.09 against the US dollar
US Federal Reserve officials indicated that interest rates were likely to remain higher for longer. The local currency opened at 83.09 as compared to previous close of 83.07. The US dollar index, which measures the currency against a basket of rivals, rose to a six-month high of 105.68.
The US 2-year yield climbed to 5.20% and the 10-year reached 4.45%, the highest since 2006 and 2007, respectively. On Wednesday, the rupee ended 20 paise higher at 83.07 a dollar. The local currency came within a whisker of a record low, prompting the Reserve Bank of India (RBI) to intervene.
The US Federal Reserve on Wednesday kept the benchmark interest rates unchanged at a 22-year high of 5.25% to 5.5%, but said it will raise interest rates one more time this year. The median dot plot in the Fed's summary of economic projections (SEP) showed 50 basis points of rate cuts in 2024, which is down from 100 bps that officials had projected in June. Read here: US Fed Meeting: FOMC keeps interest rates unchanged; here are 10 key takeaways from Federal Reserve monetary policy Meanwhile, crude oil prices declined, limiting losses in the rupee.
Benchmark Brent futures fell 0.67% to $92.90 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.01% to $90.28 a barrel. On the domestic front, the Indian benchmark equity indices, Sensex and Nifty 50 were trading lower in the pre-opening session. On Wednesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹3,110.69 crore, while Domestic Institutional Investors (DIIs) net offloaded shares to the tune of ₹573.02 crore, as per provisional data available on the exchanges.
Read more on livemint.com
