Mumbai: The Indian rupee edged higher against the US dollar in the forex market. As per market experts, the interest rate hike by the US Federal Reserve has increased the possibility of the US tipping into recession. And this has supported the upward rally of the Indian currency. On Wednesday, the US Federal Reserve hiked the interest rate by 75 bps. But, the rising crude oil prices, month-end importer demand and global recession fears weighed upon the Indian rupee.
In the interbank foreign exchange, the local currency opened at 79.80 against US dollar, up by 10 paise against the last close. During trading it then touched at 79.77,registering a gain of 14 paise over the last close. On Wednesday, the Indian rupee declined 13 paise to close at 79.91 against the US dollar.
The dollar index, which gauges the US currency’s strength against a basket of six currencies, fell 0.22% to 106.21. Foreign institutional investors remained net sellers in the Indian capital market, as they offloaded shares worth Rs 436.81 crore.