Home / Markets / Stock Markets /  Rupee opens weak as Fed meet eyed

The Indian rupee on Wednesday opened marginally lower against US dollar on caution ahead of the Federal Reserve's policy decision.

At 9.10am, the domestic currency was trading at 70.94 a dollar, down 0.13% from Tuesday's close of 70.84. The Indian unit opened at 70.89 a dollar.

The two-day meeting of the Federal Reserve will conclude later today, and 40 economists polled by Bloomberg expect the central bank to announce a quarter point reduction in rates. Traders also eye US-China trade talks after Reuters reported that a US administration official had said an interim trade agreement between Washington and Beijing might not be completed in time for signing in Chile next month as expected. However, the official added that it did not mean the accord was falling apart, which helped limit the damage in the market..

The yield on the 10-year Indian government bond was at 6.504% compared with its previous close of 6.518%.

The benchmark equity index Sensex rose 0.6% to cross the crucial 40000 mark. Year to date, it has gained 10.43%.

In the year so far, the rupee has weakened 1.51%, while foreign investors have bought nearly $8.66 billion in Indian equities and $4.19 billion in debt.

Asian currencies were trading mixed. Taiwan dollar was up 0.11%, Thai Baht rose 0.1% and Philippines peso gained 0.04%. However, South Korean won was down 0.5% and Indonesian rupiah lost 0.05%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.70, up 0.02% from its previous close of 97.69.

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