MUMBAI: The rupee edged lower on Wednesday on the back of the dollar's gains against major units, but a Moody's outlook upgrade for the local currency rating limited a further fall ahead of the stock market open.
At 9:03 am the partially convertible rupee was at 46.75/76 per dollar, marginally weaker than 46.71/72 at close on Tuesday.
Moody's Investors Services on Tuesday raised its outlook of India's local currency rating to positive from stable, citing the country's strong external position and resilience to the global credit crisis.
Traders will watch the stock market for direction. At 0333 GMT, the MSCI-index of Asian stocks ex-Japan was down 0.8 percent and the Nifty India stock futures traded in Singapore were 0.2 percent higher, indicating a steady to lower start in India.
The dollar held near a 2-½ month high on the euro and kept a firmer footing against the yen on Wednesday as the market waited to see if the U.S. Federal Reserve would give any signal on when interest rates might begin to rise.
While no change in rates is expected, the language of the Federal Open Market Committee statement at 1915 GMT will be scrutinised after improving economic data has raised speculation that tightening may come sooner than previously expected, helping to lift the dollar.
Source : The Economic Times