Fed announcement pulls Rupee by 7 paise against US dollar

After announcement by the FEd chief to remain patient overthe rising demand for rate hike, the Indian rupee appreciated by 7 paise to 70.34 against the US dollar in opening trade Friday, driven by gains in domestic equities and weakening of the greenback in overseas markets. The rupee opened strong at 70.38 at the interbank forex market against previous close of 70.41 per dollar then gained further ground and touched a high of 70.34 amid positive opening in domestic equities, displaying gains of 7 paise against the greenback. On Wednesday, the rupee had risen by 5 paise to close at 70.41 against the US dollar.

Forex dealers said, selling of the American currency by exporters and easing crude prices supported the rupee in early trade.

Meanwhile, brent crude, the global benchmark, was trading lower at 61.57 per barrel lower by 0.18 per cent.

Traders said, sustained foreign fund outflows however restricted the rupee up move.

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Foreign funds pulled out Rs 344.58 crore from the capital markets on a net basis, while domestic institutional investors purchased shares worth Rs 10.98 crore Thursday, provisional data showed.

Meanwhile, the benchmark BSE Sensex was trading with gains of 76.24 points, or 0.20 per cent to quote at 36,179.14 while the NSE Nifty was trading at 10, 836.90, up 15.30 points, or 0.14 per cent.