The Indian rupee on Thursday lost 19 paise to end the day at 79.13 against the dollar as the likelihood of another significant rate hike this month emerged due to the U.S. Federal Reserve's hawkish policy. The local currency at the interbank foreign exchange market started at 79.05 and concluded at 79.13, down 19 paise from its previous level.
The RBI on Wednesday announced a number of measures to increase foreign exchange inflows in an effort to stop the decline of the rupee, including raising the limits for corporate overseas borrowing and loosening restrictions on foreign investments in government bonds.
The minutes of the U.S. Federal Reserve's meeting from last month showed a hawkish stance, according to forex traders, and a rate hike of 75 basis points is expected in July. The dollar index, which measures the greenback's strength against a basket of 6 currencies, declined 0.21% to 106.86. The global oil benchmark Brent crude futures advanced 0.81% to USD101.51 per barrel.
According to stock exchange data, foreign institutional investors sold shares worth Rs330.13 crore on Wednesday, making them net sellers in the capital market.
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