<p>Mumbai: The rupee depreciated 9 paise to close at 86.64 (provisional) against the US dollar on Thursday, weighed down by a strong US dollar amid a hawkish tone of the US Federal Reserve.</p><p>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.</p><p>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.</p>.Rupee falls 4 paise to 86.59 against US dollar in early trade.<p>The local unit settled at 86.64 (provisional), registering a fall of 9 paise over its previous close.</p><p>On Wednesday, the rupee pared its initial losses to settle on a positive note, higher by 2 paise to close at 86.55 against the US dollar.</p><p>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.</p><p>"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.</p><p>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.</p><p>"We expect the rupee to trade with negative bias on strength in the US Dollar and selling pressure from FIIs. Month-end Dollar demand from importers may also weigh on the rupee," Choudhary added.</p><p>There is uncertainty over tariffs by the US administration, which may further pressure the rupee. However, any central bank intervention may support the rupee.</p><p>Traders may take cues from GDP and weekly unemployment claims data from the US. Investors may remain cautious ahead of the Union Budget of February 1 and the RBI’s bond buying on Friday, which may lead to volatility, Choudhary added.</p><p>Brent crude, the global oil benchmark, fell 0.64 per cent to USD 76.09 per barrel in futures trade.</p><p>In the domestic equity market, the 30-share BSE Sensex settled 226.85 points, or 0.30 per cent, up at 76,759.81 points, while the Nifty rose 86.40 points, or 0.37 per cent, to close at 23,249.50 points.</p><p>Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,586.43 crore in the capital markets on a net basis on Wednesday, according to exchange data.</p>
<p>Mumbai: The rupee depreciated 9 paise to close at 86.64 (provisional) against the US dollar on Thursday, weighed down by a strong US dollar amid a hawkish tone of the US Federal Reserve.</p><p>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.</p><p>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.</p>.Rupee falls 4 paise to 86.59 against US dollar in early trade.<p>The local unit settled at 86.64 (provisional), registering a fall of 9 paise over its previous close.</p><p>On Wednesday, the rupee pared its initial losses to settle on a positive note, higher by 2 paise to close at 86.55 against the US dollar.</p><p>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.</p><p>"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.</p><p>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.</p><p>"We expect the rupee to trade with negative bias on strength in the US Dollar and selling pressure from FIIs. Month-end Dollar demand from importers may also weigh on the rupee," Choudhary added.</p><p>There is uncertainty over tariffs by the US administration, which may further pressure the rupee. However, any central bank intervention may support the rupee.</p><p>Traders may take cues from GDP and weekly unemployment claims data from the US. Investors may remain cautious ahead of the Union Budget of February 1 and the RBI’s bond buying on Friday, which may lead to volatility, Choudhary added.</p><p>Brent crude, the global oil benchmark, fell 0.64 per cent to USD 76.09 per barrel in futures trade.</p><p>In the domestic equity market, the 30-share BSE Sensex settled 226.85 points, or 0.30 per cent, up at 76,759.81 points, while the Nifty rose 86.40 points, or 0.37 per cent, to close at 23,249.50 points.</p><p>Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,586.43 crore in the capital markets on a net basis on Wednesday, according to exchange data.</p>