<p>Mumbai: The rupee depreciated 4 paise to 86.59 against the US dollar in early trade on Thursday, after the US FED kept rates on hold and was hawkish in its outlook.</p><p>Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and broad strength of the American currency in the overseas market.</p><p>At the interbank foreign exchange, the rupee opened at 86.58 then fell further to 86.59 against the American currency, registering a decline of 4 paise over its previous close.</p><p>On Wednesday, the rupee pared its initial losses and settled for the day on a positive note, higher by 2 paise to close at 86.55 against the US dollar.</p><p>The US FED kept rates on hold but was hawkish in its outlook as it said rates would be held higher for longer and downplaying expectations for future rate cuts.</p><p>"The US Federal Reserve's decision to hold rates at 4.25 per cent-4.50 per cent has further added to the rupee's woes. Despite pressure from former President Donald Trump for deeper cuts, Fed Chair Jerome Powell emphasized a data-driven approach, citing stable unemployment and positive inflation trends," CR Forex Advisors, MD - Amit Pabari said.</p>.Weak urban market squeezes Colgate Palmolive’s Q3.<p>Additionally, the focus remains on India's upcoming budget announcement, which is expected to set the tone for foreign investment and economic growth, traders said.</p><p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 107.84, lower by 0.14 per cent,</p><p>Brent crude, the global oil benchmark, was quoted 0.08 per cent lower at $76.52 per barrel in futures trade, as traders digested a hawkish FED and US president's reiteration that he had plans to increase domestic energy production.</p><p>In the domestic equity market, the 30-share BSE Sensex was trading 99.33 points or 0.13 per cent up at 76,632.29 in morning trade, while Nifty was higher by 58.50 points or 0.25 per cent to 23,221.60.</p><p>Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,586.43 crore in the capital markets on net basis on Wednesday, according to exchange data.</p>
<p>Mumbai: The rupee depreciated 4 paise to 86.59 against the US dollar in early trade on Thursday, after the US FED kept rates on hold and was hawkish in its outlook.</p><p>Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and broad strength of the American currency in the overseas market.</p><p>At the interbank foreign exchange, the rupee opened at 86.58 then fell further to 86.59 against the American currency, registering a decline of 4 paise over its previous close.</p><p>On Wednesday, the rupee pared its initial losses and settled for the day on a positive note, higher by 2 paise to close at 86.55 against the US dollar.</p><p>The US FED kept rates on hold but was hawkish in its outlook as it said rates would be held higher for longer and downplaying expectations for future rate cuts.</p><p>"The US Federal Reserve's decision to hold rates at 4.25 per cent-4.50 per cent has further added to the rupee's woes. Despite pressure from former President Donald Trump for deeper cuts, Fed Chair Jerome Powell emphasized a data-driven approach, citing stable unemployment and positive inflation trends," CR Forex Advisors, MD - Amit Pabari said.</p>.Weak urban market squeezes Colgate Palmolive’s Q3.<p>Additionally, the focus remains on India's upcoming budget announcement, which is expected to set the tone for foreign investment and economic growth, traders said.</p><p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 107.84, lower by 0.14 per cent,</p><p>Brent crude, the global oil benchmark, was quoted 0.08 per cent lower at $76.52 per barrel in futures trade, as traders digested a hawkish FED and US president's reiteration that he had plans to increase domestic energy production.</p><p>In the domestic equity market, the 30-share BSE Sensex was trading 99.33 points or 0.13 per cent up at 76,632.29 in morning trade, while Nifty was higher by 58.50 points or 0.25 per cent to 23,221.60.</p><p>Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,586.43 crore in the capital markets on net basis on Wednesday, according to exchange data.</p>