Weakness across Asian FX before Fed decision to put mild pressure on Indian rupee

The Indian rupee was expected to start Wednesday slightly weaker as most Asian currencies lost ground ahead of the Federal Reserve’s policy announcement, Business Recorder reported, citing Reuters. Traders forecast an opening in the 95.12-95.16 range after the currency ended Tuesday at 95.1150 per dollar, up 0.1%.

The rupee had recovered from an intraday low of 95.24, with traders attributing dollar sales by state-run banks possibly to the Reserve Bank of India. Brent crude gained 1.6% to $115.74 a barrel following an attack on a Saudi refinery, while the Fed was broadly expected to hold rates steady; investors were watching for signals on future increases. High oil costs and pressure on capital flows continued to cloud the rupee’s outlook.