Indian rupee was trading flat against the US dollar on Wednesday tracking muted American currency at overseas markets and weak domestic equities as Federal Reserve Chair Jerome Powell expressed caution about the timing of interest rate cuts in the United States. Fed Chair Jerome Powell in his testimony before the Senate Banking Committee on Tuesday said that while inflation has eased in recent months, a rate cut is not appropriate until the central bank has greater confidence that it is headed towards the 2% target. Investors are cautiously awaiting US consumer price index data and Federal Reserve Chairman Jerome Powell’s second testimony in front of the House Financial Services Committee for further cues on potential interest rate cuts. Meanwhile, foreign fund inflows and easing crude oil prices have supported the rupee. Foreign Institutional Investors were net buyers in the capital markets on Tuesday, as they purchased shares worth Rs 314.46 crore, exchange data showed.
The partially convertible currency is currently trading flat at its previous close of 83.49 on Tuesday. The currency touched a high and low of 83.5075 and 83.4850 respectively.
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