Mumbai: The Indian rupee declined against the US dollar in early trade on Wednesday. As per forex traders, a firm American currency index ahead of the Federal Reserve’s interest rate decision and prevailing concerns due to global trade tariff moves weighed upon the Indian currency. However, easing crude oil prices and some inflow of foreign capital in domestic equity markets supported the local currency.
At the interbank foreign exchange, the rupee opened weak at 86.60 and fell to 86.68 before trading at 86.66 against the US dollar in initial deals, registering a loss of 10 paise from its previous closing level. Rupee settled 25 paise higher at 86.56 against the US dollar on Tuesday, gaining for the third straight session during which it added 66 paise. The unit had appreciated 24 paise to close at 86.81 against the US dollar on Monday after ending 17 paise up at 87.05 in the preceding session on Thursday. Forex market was closed on Friday on the occasion of Holi festival.
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Meanwhile, the US dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.09 per cent higher at 102.98. Foreign institutional investors (FIIs) purchased Indian equities worth Rs 694.57 crore on a net basis on Tuesday.
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