The Indian rupee lost 47 paise to close at 75.76 against the dollar on Wednesday, snapping a three-day winning streak, reflecting a strong American currency in the foreign market and a bearish trend in domestic markets.

The dollar index, a significant headwind for the Indian rupee, has been buoyed by predictions of rate hikes by the US Federal Reserve to reign in decades-high inflation, according to forex dealers.

The rupee opened at 75.50 versus the dollar on the interbank foreign exchange market, but lost momentum and finished at 75.76, down 47 paise from the previous day. The rupee gained 24 paise versus the dollar on Tuesday, closing at 75.29. In the meantime, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.04 percent at 99.51. Meanwhile, Brent crude prices rose 1.55 percent to USD108.29 a barrel, the global benchmark.

The 30-share Sensex fell 566.09 points, or 0.94 percent, to 59,610.41, while the wider NSE Nifty fell 123.70 points, or 0.69 percent, to 17,833.70. According to stock exchange data, foreign institutional investors remained net purchasers in the capital market on Tuesday, purchasing shares worth Rs 374.89 crore.

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