Rupee extends losses at 73.90 against the US dollar

The local unit on Wednesday had settled at 73.32 against the American currency.

Jun 17, 2021 02:06 IST India Infoline News Service

The Indian rupee slipped 57 paise to 73.90 against the US dollar on Thursday, amid the strengthening of the greenback in the overseas market.

At the interbank foreign exchange, the domestic unit opened at 73.65 against the dollar, registering a decline of 33 paise over its previous close.

The local unit on Wednesday had settled at 73.32 against the American currency.

Besides, foreign institutional investors (FIIs) net sold shares worth Rs870.29cr, while domestic institutional investors (DIIs) net sold shares worth Rs874.20cr in the Indian equity market, as per provisional data available on the NSE.

On the domestic equity market front, BSE Sensex was trading 334 points or 0.64% at 52,098.04, while the broader NSE Nifty was down 113 points or 0.72% at 15,653.

Meanwhile, Federal Open Market Committee (FOMC) on Wednesday had indicated that rate hikes could come as soon as 2023, after signaling in March that it saw no increases until beyond that year. The latest projections from Fed officials suggest interest rates will be increased to 0.6 per cent in 2023 compared to previous projections indicating rates would remain at near-zero levels. Seven officials expect a rate hike as soon as 2022.

The Fed also raised its headline inflation expectation to 3.4% for 2021, a full percentage point higher than the March projection, but the post-meeting statement continued to say that inflation pressures are transitory.

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