Rupee gains 9 paise against US dollar on Fed rate hike

The US dollar extended losses overseas after the US Federal Reserve under Jerome Powell stuck to its target for interest rate hikes this year.

business Updated: Mar 22, 2018 10:59 IST
Press Trust of India, Mumbai
Rupee vs dollar,Rupee,US dollar
The rupee had ended almost flat at 65.21 against the US dollar on Wednesday.(AFP Photo)

The rupee rose 9 paise against the US dollar to 65.12 in early trade at the interbank forex market on Thursday, amid weakness in the greenback after the US Fed raised benchmark lending rate by 25 bps.

The dollar extended losses overseas after the US Federal Reserve stuck to its target for interest rate hikes this year. The central bank’s Chairman Jerome Powell forecast a steeper path of rate hikes in 2019 and 2020, citing improving economic outlook.

| Read: US Fed raises key interest rate amid stronger growth outlook

Forex dealers said persistent inflows of foreign funds and weakness in the dollar against other currencies overseas supported the domestic unit.

The rupee had ended almost flat at 65.21 against the US dollar on Wednesday.

Meanwhile, the benchmark BSE Sensex advanced by 73.51 points, or 0.22%, to 33,209.69 in the opening session.

On a net basis, foreign institutional investors (FIIs) bought shares worth Rs 98.44 crore, while domestic institutional investors (DIIs) made purchases worth Rs 197.78 crore on Wednesday, provisional data showed.

First Published: Mar 22, 2018 10:41 IST