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Rupee opens weak at 73.6/dollar after US Fed hints at earlier-than-expected rate hike

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Indian rupee slipped in the early trade on June 17. It opened 35 paise lower at 73.67 per dollar against previous close of 73.32, amid selling seen in the domestic equity market after US Fed projected interest rate hikes into 2023.

On June 16, rupee ended flat at 73.32 per dollar versus previous close of 73.31.

The Sensex was down 147.26 points or 0.28% at 52,354.72, and the Nifty was down 46.50 points or 0.29% at 15,721.

The Federal Reserve brought forward its projections for the first post-pandemic interest rate hikes into 2023, citing an improved health situation and dropping a long-standing reference that the crisis was weighing on the economy.

The dollar rose to its highest level in almost two months versus major peers on Thursday after the Federal Reserve brought forward its projections for the first post-pandemic interest rate hikes into 2023, citing an improved health situation and dropping a long-standing reference that the crisis was weighing on the economy.

Gold prices hovered near a more than one-month low on Thursday as the dollar and U.S. Treasury yields jumped after Federal Reserve officials projected interest rate hikes sooner than expected.

Crude oil prices fell on Thursday pressured by a stronger US dollar, but losses were limited by a big drop in crude oil inventories in the United States, the world’s top oil consumer.

A sharp move was seen in the Dollar index post the FOMC meet. We feel the USDINR pair should move higher towards 73.70 levels, said ICICI Direct.

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