Mumbai: The Indian rupee weakened to a two-week low against the US dollar ahead of the US Federal Reserve policy decision due later on Wednesday. The rupee ended at 67.64 against the US dollar—a level last seen on 29 May, down 0.23% from its previous close of 67.49. The currency opened at 67.60 a dollar and touched a low of 67.71 a dollar.

Bond yield fell after data showed inflation was in line with analyst estimates. Consumer price index-based (CPI) inflation rose 4.87% in May from a year earlier broadly in line with the 4.9% median estimate of 41 economists surveyed by Bloomberg. The 10-year bond yield ended at 7.93% from its Tuesday’s close of 7.97%. Bond yields and prices move in opposite directions.

The Federal Reserve is expected to raise interest rates Wednesday, while European Central Bank members are poised to hold the first formal talks on ending its bond-buying program Thursday. The Bank of Japan meets Friday, with no change to policy expected.

So far this year, the rupee has weakened 5.6%, while foreign investors have bought $169 million and sold $4.65 billion in equity and debt markets, respectively.

Benchmark Sensex Index rose 0.13% or 46.64 points to 35,739.16. Since January, it has gained 4.1%.