Rupee gains 35 paise against greenback ahead of US Federal Reserve's policy

16 Mar 2022 , 11:49 AM

The Indian rupee opened higher against the greenback on Wednesday morning trade as the US Dollar index tumbled to give slight uplift to the domestic equities.

However, the local currency remained poised ahead of US Federal Reserve’s policy statement late Wednesday and continuing volatility in the global crude oil prices amidst the ongoing conflicts between Russia and Ukraine.

The domestic currency opened at 76.26 per US Dollar against its previous close of 76.61. The partially convertible rupee moved in a band of 76.2600 – 76.3557 so far in the day. It was last seen at 76.29 against the US Dollar.

The US Dollar which gained strength amidst rising conflicts between Russia and Ukraine retreated on Wednesday and was last seen at 98.85 points against its previous close of 99.10.

Even though the local currency gained some ground, investors’ sentiment remains bemused on the rupee as they fear an aggressive hike in rates by the US Fed. Traders anticipate a minimum hike of 25 basis points by the committee as Fed mulls to cope with ongoing inflation in the world’s largest economy.

Globally, crude oil prices also started to plummet as Russia enters into talks with Ukraine.

On the domestic front, broader Indian indices remained cheery as domestic equities strengthened. BSE Sensex was trading 1.52% higher at 56,627 points against its previous closing of 55,776.85 points. NSE Nifty also jumped nearly 1.50% at 16,911 points against previous close of 16,663 points.