Rupee opens lower as investors jitters Fed rate hike ahead of US Fed's meeting

The rupee started the day on a weak note as US Dollar strengthened ahead of investors anticipation of an aggressive approach by the Federal Reserve to cope with the ongoing inflation in the world's largest economy. However, a slowdown in elevating crude oil prices lent some support to the dramatically falling local currency.

The domestic currency was last seen at 76.6200 per US Dollar against its previous close of 76.5900/$. So far in the day, it moved in a band of 76.5634 - 76.7536.

The US Federal committee's meeting will conclude on March 16, 2022. Currently, US Economy is witnessing the highest inflation in four decades. Investors highly anticipate a hike in interest rates at the meeting and hence fear further rate increase for 2022.

Globally, the US Dollar index, gauging its strength against the basket of six currencies was trading 12 cents higher at 99.24 points against its previous close of 99.12 points.

Brent Crude oil future was at $109.94 per barrel after skyrocketing during the last week after Russia has hinted towards substantive negotiation over Ukraine. WTI Crude oil future was at $106.53 per barrel, down by 2.77%.

On the domestic front, broader Indian indices stabilized after hitting low points in the previous week. BSE Sensex was last seen at 56,085 points, up by 0.96% against its previous close of 55,550 points. NSE Nifty was at 16,755 points against its previous close of 16,630 points.