The Indian rupee closed at a four-month low against the US dollar ahead of the US Federal Reserve’s policy statement due later on Wednesday.
The home currency ended at 65.21 a dollar—a level last seen on 16 November 2017, down 0.02% from its Tuesday’s close of 65.20. The rupee opened at 65.23 a dollar and touched a high and a low of 65.19 and 65.23 respectively.
The US Fed is expected to raise interest rates on Wednesday, and thereafter likely to go for two more rate hikes this year.
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Finance ministry officials discussed government borrowing plan for FY19 with primary dealers. Bonds with shorter tenor will boost demand and lower mark-to-market losses, a government official told Bloomberg.
The 10-year bond yield ended at 7.583% compared to its previous close of 7.618%. Bond yields and prices move in opposite directions.
So far this year, the rupee has fallen 2%, while foreign investors have bought $1.60 billion in equity and sold $310.80 million in debt market.