( Photo: Mint)
( Photo: Mint)

Rupee pares gains on expectation of dovish Fed outcome

  • The US Fed is widely expected to join the European Central Bank in adopting a dovish tone
  • The 10-year bond yield closed at 6.841%, compared with Tuesday's close of 6.808%

Mumbai: The rupee erased all gains and closed little changed against the US dollar ahead of US Federal Reserve policy outcome due later on Wednesday.

The rupee ended at 69.70 a dollar, down 0.01% from its previous close of 69.69. The Indian currency had opened at 69.57 a dollar.

The US Fed is widely expected to join the European Central Bank in adopting a dovish tone.

Back home, the benchmark Sensex index was up 0.17% at 39,112.74 points. Year to date, the index has risen 8.3%.

The 10-year bond yield closed at 6.841%, compared with Tuesday's close of 6.808%.

So far this year, the rupee has risen 0.12% against the greenback. During the period, foreign investors bought $11.19 billion in Indian equities and $1.21 billion in the debt market.

Other Asian currencies also traded higher. The South Korean won was up 0.69%, Taiwan dollar 0.46%, Indonesian rupiah 0.36%, Philippines peso 0.21%, Malaysian ringgit 0.14%, and Hong Kong dollar 0.06%. However, China Offshore was down 0.08% and the Singapore dollar fell 0.06%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.658, up 0.01% from its previous close of 97.644.

(Bloomberg contributed this story)

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