Rupee slumps 26 paise to close at 73.87 against US dollar

The rupee fell by 26 paise to close at 73.87 (provisional) against the US currency on Wednesday, tracking a strong American currency in the overseas markets ahead of the outcome of the US Fed meeting.

At the interbank foreign exchange market, the local currency opened at 73.70 and witnessed an intra-day high of 73.66 and a low of 73.93 against the US dollar in day trade.

The local unit finally settled at 73.87 a dollar, down 26 paise over its previous close. On Tuesday, the rupee had settled at 73.61 against the US dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent higher at 93.22.

Forex traders said investors are awaiting cues on taper timeline and US Fed's projections on interest rates. The US Fed meeting outcome will be announced later in the day.

Brent crude futures, the global oil benchmark, advanced 1.24 per cent to USD 75.28 per barrel.

On the domestic equity market front, the BSE Sensex ended 77.94 points or 0.13 per cent lower at 58,927.33, while the broader NSE Nifty declined 15.35 points or 0.09 per cent to 17,546.65.

Foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth Rs 1,041.92 crore, as per exchange data.