Rupee falls 9ps to 86.64/$

Mumbai: The rupee depreciated 9paise to close at 86.64 against the US dollar on Thursday, weighed down by a strong US dollar amid a hawkish tone of the US Federal Reserve. Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets. At the interbank foreign exchange, the rupee opened on a weak note at 86.58 and touched a high of 86.56 and a low of 86.65 against the American currency during the session.

The local unit settled at 86.64, registering a fall of 9paise over its previous close. On Wednesday, the rupee pared its initial losses to settle on a positive note, higher by 2paise to close at 86.55 against the US dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 107.98. “US Dollar gained on the hawkish tone of the US Federal Reserve. Fed kept interest rates unchanged at 4.25-4.5 per cent at its Federal Open Market Committee (FOMC) meeting on Wednesday,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. The US Fed kept rates on hold but was hawkish in its outlook as it said rates would be held higher for a longer period, downplaying expectations for future rate cuts.