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Ahead of the US Fed rate hike, the rupee value faltered by 8 paise to 79.82 against the US dollar in opening trade on Wednesday. The local currency also faced the heat of firm crude oil prices and a strong dollar in the overseas market.

Also Read: Stable dollar, fall in crude drive stocks

At the interbank foreign exchange market, the rupee opened at 79.81 against the greenback, then fell to 79.82, registering a decline of 8 paise over its last close.

The local unit also reduced to 79.79 against the dollar in its initial deals. Whereas, on Tuesday, the rupee settled 7 paise higher at 79.74 against the dollar.

Also Read: Indian currency continues to depreciate. How exports may miss benefits of weak rupee

All eyes are on FOMC decision on interest rates

The stock market plunged as Federal Open Market Committee(FOMC) began it's two day meeting on Tuesday. Investors are keenly waiting for its decision on interest rates this evening. Experts are expecting a 75 basis points hike by the committee.

Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors said, adding a 75 basis points hike is factored in by the market but a 100 basis points rise will be huge guidance and will take the dollar index higher.

Also Read: India’s CAD likely to widen to a decadal high of 3.8% of GDP in FY23: Report

As investors across the globe are waiting for the FOMC decision, the dollar index continued to advance 0.04 per cent to 110.26. The dollar index has the greenback's strength against a basket of six currencies.

Brent crude, under the reference of which nearly two-thirds of all crude is traded, rose 0.23 per cent to USD 90.83 per barrel. In the domestic equity market front, the 30-share BSE Sensex traded at 23.85 points or 0.04 per cent higher at 59,743.59. Whereas, the index which enlisted by 50 large Indian companies, NSE advanced by 2.05 points or 0.01 per cent to 17,818.30.

According to exchange data, foreign institutional investors purchased shares worth 1,196.19 crore in the capital market on Tuesday.

(With inputs from PTI)

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