Rupee slips 7 paise to 74.87 against US dollar in early trade

Mumbai, July 30 (PTI): The rupee fell 7 paise to 74.87 against the US dollar in opening trade on Thursday after the US Federal Reserve reiterated its dovish stance and held interest rates steady.

At the interbank forex market, the rupee opened at 74.84, then lost further ground and touched 74.87 against the US dollar, down 7 paise over its last close of 74.80.

“Fed policy statement was along expected lines. It acknowledged recent improvement in economic activity and financial conditions but said considerable risks to economic outlook remain over the medium term,” IFA Global Founder and CEO Abhishek Goenka said.

Goenka further said “US nominal yields are a tad lower and real rates even lower post the policy. The dollar continues to trade weak against majors (EUR, GBP, JPY, AUD, CAD and CHF). Equities and commodities continue to remain buoyed”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07 per cent to 93.38.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 258.09 points higher at 38,329.22 and broader NSE Nifty rose 74.65 points to 11,277.50.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth INR 352.62 crore on Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.02 per cent to USD 43.74 per barrel.