Rupee down 8 paise to 82.88 against dollar after hawkish Fed comments

Rupee down 8 paise to 82.88 against dollar after hawkish Fed comments

The rupee was down 8 paise to 82.88 against the morning trade on Thursday after the US Federal Reserve raised interest rates and maintained a hawkish stance.

The domestic unit opened at 82.87 against the dollar and lost ground to quote at 82.88, registering a loss of 8 paise over its previous close.

The local unit touched 82.84 against the American currency in initial trade.

The rupee settled at 82.80 against the American currency on Wednesday.

According to Anil Kumar Bhansali, head of Treasury, Finrex Treasury AdvisorsTreasury Advisors, the US Fed's commentary was not dovish at all. The price of oil was higher at USD 95.50 per barrel, while the GBP and euro fell after the hawkish FED comments. The rupee could trade between 82.50 and 83.20. Exporters may sell dollars at 83 levels, keeping a close watch on RBI while importers may continue to buy all dips they get, Bhansali said.

The dollar index, which measures the strength of the dollar against a basket of six currencies, rose 0.53 per cent to 111.94.

The global oil benchmark fell by 0.38 per cent to USD 95.79 per barrel.

The 30 share BSE Sensex was trading 238.3 points or 0.39 down at 60,667 in the domestic equity market. 79 and the broader NSE Nifty fell by 57.55 points or 0.32 per cent to 18,025. Foreign Institutional Investors FIIs were net buyers in the capital markets as they purchased shares worth Rs 1,436. According to exchange data, there were 30 crore on Wednesday.