Rupee holds up, opens 10 paise at 67.54 against dollar

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The rupee on Thursday stood up to Fed rate hike with a gain of 10 paise at 67.54 against the dollar.

The Federal Reserve raised its benchmark overnight lending rate to 1.75-2 per cent and signalled a faster pace of tightening.

Banks and exporters gave the American currency a wide berth.

However, the rupee had slipped over 15 paise to close at a near one-week low of 67.64 in the previous session.

Meanwhile, the domestic equity markets opened on a cautious note after the US Fed raised interest rates. Concerns about US-China trade frictions clouded sentiment.

The BSE Sensex declined 108 points to 35,630.50 this morning. The NSE Nifty slipped 34 points to 10,822.70.

The Fed raised its benchmark overnight lending rate a quarter percentage point, as widely expected, on the back of strong US economic growth.

Fed policymakers’ rate projections pointed to two additional hikes by the end of this year compared with one previously, based on board members’ median forecast.

Foreign portfolio investors offloaded shares worth Rs 1,321.64 crore on Wednesday, according to data available with NSDL.

Oil prices eased on Thursday, dragged down by rising output, although strong demand and a drop in US fuel inventories gave the market some support.

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