Rupee Slips 3 Paise To Close At 82.59 Against US Dollar Ahead Of Fed Rate Decision

New Delhi: The rupee slipped 3 paise to close at 82.59 against the US dollar on Tuesday ahead of the much-anticipated US Federal Reserve decision on key policy rate. A rebound in crude oil prices and unabated foreign fund outflows weighed on the local unit while a weak US dollar ahead of the interest rate decision and gains in domestic equities supported the rupee sentiment, forex dealers said.

Investors are keenly awaiting the interest rate decision by the US Federal Reserve due on Wednesday. (Also Read: Best Pension System In World: This Country Topped The List, Check India's Ranking)

The US dollar weakened against a basket of global currencies amid expectations that the Federal Reserve and the Bank of England would not hike rates much further, or at all, due to the banking crisis. (Also Read: Unlike Global Economy, India Would Not Slow Down: RBI Article)

At the interbank foreign exchange, the domestic unit opened strong at 82.54 against the dollar. During the day, it went as high as 82.53 and hit the lowest level of 82.70. It finally settled at 82.59 against the American currency, registering a fall of 3 paise against its previous close.

On Monday, the rupee settled at 82.56 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, retreated from earlier highs and traded down 0.23 percent at 103.09.

Global oil benchmark Brent crude futures rose by 0.98 percent to USD 74.51 per barrel. The 30-share BSE Sensex closed 445.73 points or 0.77 percent higher at 58,074.68 points while the broader NSE Nifty jumped 119.10 points or 0.70 percent to reclaim the 17,100-level and ended at 17,107.50 points.

Foreign Institutional Investors (FIIs) remained net sellers in the domestic capital market on Tuesday as they offloaded shares worth Rs1,454.63 crore, according to exchange data.