The Indian rupee appreciated by 7 paise to 83.24 against the US dollar (Dh22.68) on Wednesday on the back of a decline in U.S. Treasury yields before the Federal Reserve minutes, carrying forward its recent momentum.
On Tuesday, the currency ended at 83.3050 against the US dollar, slightly up from 83.3350 on Friday. The dollar/rupee pair witnessed a drop from 83.50 on Friday and inched further down on Tuesday.
Forex traders indicated that the rupee encountered resistance due to weak sentiment in the domestic equity market and outflows of foreign funds.
Most Asian currencies were marginally higher, the dollar index slipped slightly and U.S. Treasury yields lower, awaiting the minutes of the Fed’s last meeting.
The Fed at that meeting had signalled that it is still leaning towards cutting borrowing costs while acknowledging the higher inflation readings in the January-March quarter.