The rupee closed at a new low versus the US dollar as risk aversion ahead of the Federal Reserve’s statement, overseas investment outflows from Indian equities, and dollar demand from oil importers exerted pressure on the local currency. The rupee settled at 83.29 per US dollar on Wednesday.
The Indian rupee recorded its largest one-day gain in almost six weeks on Tuesday, supported by a weaker US dollar and late inflows. The rupee closed at 82.9350 per U.S. dollar, 0.2% stronger than its previous close of 83.1075. Analysts believe that the presence of the central bank and inflows from initial public offerings contributed to the rupee’s strength.
