Mumbai, Dec 10: The Indian rupee slipped 20 paise to 90.07 against the US dollar in early trade on Wednesday, pressured by importer dollar demand, tariff concerns, and market anticipation of the US Federal Reserve’s policy stance.
Forex traders noted that all eyes are now on the US-India trade talks, beginning December 10, which could provide some support to the rupee in the coming days.
At the interbank foreign exchange, the rupee opened at 90.00 against the dollar, then fell to 90.07. On Tuesday, it had closed at 89.87. Anil Kumar Bhansal, Head of Treasury at Finrex Treasury Advisors LLP, said the rupee is likely to trade in the range of 89.70-90.20 for the day as the dollar index rose to 99.23 amid expectations of a hawkish stance from the Fed.
Market Movers
US Federal Reserve: Investors await remarks by Chairman Jerome Powell, which could influence the dollar and rupee movement.
Brent Crude: Oil prices rose 0.19% to USD 62.06 per barrel in futures trade.
Domestic equities: The Sensex climbed 134.71 points to 84,800.99, while the Nifty was up 41.50 points at 25,881.15.
FIIs activity: Foreign Institutional Investors sold equities worth ₹3,760.08 crore on Tuesday.
Traders expect the rupee’s movement to remain sensitive to global market cues, oil prices, and trade negotiations, while domestic equity flows continue to influence investor sentiment.