At the interbank foreign exchange, the domestic unit opened lower at 73.51 against the dollar, registering a fall of 17 paise over its previous close. According Forex traders ,investors are awaiting cues from the US CPI and domestic inflation and IIP numbers. Besides, concerns over rising Covid-19 cases also weighed on sentiment.
On Tuesday, the rupee had closed at 73.34 against the US dollar. Most Asian currencies are trading weaker against the dollar and could weigh on sentiments. On the domestic equity market front, the 30-share BSE Sensex was trading 382.61 points or 0.78 per cent lower at 48,779.20.
Similarly, the broader NSE Nifty slipped 106.70 points or 0.72 per cent to 14,744.05 and the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.27 per cent at 90.38 ahead of US CPI inflation later in the day.
Higher inflation number might add pressure on the Fed to bring forward rate rises, but currency markets have been soothed by repeated promises of patience.Brent crude futures, the global oil benchmark, was trading up 0.01 per cent at USD 68.56 per barrel.