Signals from Fed
The decision to leave interest rates unchanged and the subsequent remarks from Fed Chairman Jerome Powell have sparked a sea change in market sentiment.
The rupee depreciated by 6 paise to 64.44 against the dollar at the interbank forex market on Wednesday ahead of the announcement of RBI’s monetary policy amid foreign fund outflows.
Dealers said increased demand for the American currency from importers also weighed on the rupee but dollar’s weakness against other currencies overseas limited the losses.
Yesterday, the rupee had struggled to hold on to early strong gains and eventually ended the day almost flat at 64.38 against the US dollar.
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The benchmark BSE Sensex fell by 100.07 points, or 0.30 per cent, to 32,702.37 in early trade on Wednesday.
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