Rupee opens marginally higher at 66.90 per dollar

On the domestic front, RBI’s intervention in the Forex markets also aided the recovery in Indian rupee. The central bank is reported to have sold US dollars in the Forward markets after Indian rupee breached the psychological levels of 67.

The Indian rupee opened higher by 2 paise at 66.90/$ in early trade on Wednesday, as against the previous close of 66.92/$. On the domestic front, RBI’s intervention in the Forex markets also aided the recovery in Indian rupee. The central bank is reported to have sold US dollars in the Forward markets after Indian rupee breached the psychological levels of 67.

In international markets, investors will prefer to remain on the sidelines ahead of the outcome of US FOMC meeting. Although 25 basis points hike is a done deal, the focus will lie on the language of the policy statement. Fed has an onerous task of striking a balance by hiking rates as well as pacifying the markets by reiterating that the process of policy normalization will be gradual and gentle in order to avert the US economy from tilting into recession.

On Tuesday, Indian Rupee ended higher by 17 paise at 66.92 per dollar. The currency touched a high and low of 67.02 and 67.05 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.04 and for Euro stood at 73.92 on December 15, 2015. While, the RBI’s reference rate for the Yen stood at 55.49, the reference rate for the Great Britain Pound (GBP) stood at 101.6715.