(RTTNews) - The Indian rupee that advanced to a 5-day high of 44.55 against the US dollar at the beginning of Wednesday's trading pared gains shortly as domestic equities traded lower on speculation that the nation's Central Bank is set to hike interest rate on Thursday.
The Indian market fell sharply as caution prevailed ahead of RBI's mid-quarter policy review meet tomorrow, where the central bank is expected to raise its repo rate by at least 25 basis points to tame stubborn inflation that soared to 9.06 percent in May.
The benchmark 30-share Sensex ended down 176 points or 0.96 percent near the day's low at 18,132, while the broader Nifty index closed at 5,447, down 53 points or 0.96 percent from its previous close.
The rupee eased to 44.78 against the greenback Wednesday, down almost 23 pips from its fresh multi-day highs hit in early trading. The dollar-rupee pair, which ended yesterday's deals at 44.65, is presently worth 44.77 with 44.50 seen as the next likely target level.
