Rupee falls 2 paise to end at 83.09 against the US dollar

The Indian rupee depreciated marginally to end 2 paise lower against the US dollar on Thursday amid a broader strength in the greenback and weakness in domestic equities. The local currency ended at 83.09 as compared to previous close of 83.07.

The dollar index rose to a six-month high in Asia and was last quoted at 105.54. US treasury yields, both near and far, also climbed to decadal highs after the US Federal Reserve delivered a hawkish pause on Wednesday, Reuters reported.

However, likely intervention by the Reserve Bank of India (RBI) and easing crude oil prices limited losses in the rupee, analysts said.

On Wednesday, the rupee ended 20 paise higher at 83.07 a dollar.

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, a decline in crude oil prices supported the rupee.

Benchmark Brent futures fell 1.10% to $92.50 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.09% to $88.68 a barrel.

On the domestic front, the Indian benchmark equity indices ended lower for the third consecutive session on Thursday all-round selloff dragged by weak global cues.

The Sensex dropped 570.60, or 0.85%, to close at 66,230.24, while the Nifty 50 settled 159.05 points, or 0.8%,  lower at 19,742.35.

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.

(With inputs from Reuters)