The rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its last close.
The rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its last close.
The rupee ended 43 paise lower at 79.60 against the US dollar in early trade on Wednesday as higher-than-expected US CPI prints largely led to risk-off sentiments.
At the interbank forex market, the rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its previous close. The local unit also touched 79.54 against the dollar in opening deals.
On Tuesday, the rupee had gained 36 paise to close at a one-month high of 79.17 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03% to 109.77.
Global oil benchmark Brent crude futures fell 0.10% to $92.91 a barrel.
The US August CPI came in at 8.3% year-on-year and 0.6% month-on-month, higher than expected.
“The higher-than-expected print raises the possibility of a more aggressive monetary policy tightening by the US Fed. Markets now expect the terminal fed funds rate to be 4.25%. Markets also see a 20% chance of a 100 basis point increase. in policy next week,” according to the IFA Global Research Academy.
The higher-than-expected US CPI print has resulted in massive risk-off moves in assets, adding that the dollar has turned overnight and strengthened across the board.
On the domestic equity market front, the 30-share BSE Sensex was trading 559.31 points or 0.92% lower at 60,011.77, while the broader NSE Nifty was down 155.20 points or 0.86% at 17,914.85.
Foreign institutional investors were net buyers in the capital markets on Tuesday as they bought shares worth Rs 1,956.98 crore, according to exchange data.