The opening of the rupee against the US dollar witnessed high volatility on Wednesday before the policy decision was issued by the US central bank. The rupee opened at 73.70 in the Interbank Forex market, losing 7 paise at its last close, but soon surpassed the deficit and was trading at 73.64, unchanged from the previous close.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, rose 0.01 percent to 93.06.
Abhishek Goenka, Founder and CEO, IFA Global said, “The focus tonight will be on the Federal Open Market Committee (FOMC). Market participants will expect an explanation from the US Federation on how to implement the inflation targeting framework.”
Mr. Goenka further noted that “the threshold for the US dollar to weaken from current levels is high because there is already too much volatility spread. One possible trigger is the Fed predictably keeping inflation rates at zero while predicting Can. Level “.
On the domestic equity market front, the 30-share BSE benchmark Sensex was up 119.52 points to 39,163.87 and the broader NSE Nifty was trading up 31.35 points to 11,553.15.
Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 1,170.89 crore on a net basis on Tuesday as per provisional exchange data.
Global oil benchmark Brent crude futures rose 1.48 percent to $ 41.13 per barrel.