The rupee fell 8 paise to 79.82 against the dollar in early trade on Wednesday, as investors awaited the US Federal Reserve‘s interest rate announcement for more cues.

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Forex analysts said the strength of the US dollar in the international market, along with a flat trend in domestic stocks, impacted the local currency. Furthermore, risk-off sentiments and rising crude oil prices dragged the domestic unit.

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The rupee began at 79.81 against the dollar on the interbank foreign exchange market, then slipped to 79.82, a drop of 8 paise from its previous close.

In early trades, the local currency reached 79.79 per dollar. The rupee closed 7 paise higher versus the dollar on Tuesday, at 79.74.

The yen, which has lost roughly 20% of its value versus the US dollar this year, slipped 0.1% to 143.83 per dollar, not far from its 24-year low of 144.99.

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Investors are awaiting the Federal Open Market Committee (FOMC) decision on interest rates this evening, Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors said, adding a 75 basis points hike is factored in by the market but a 100 basis points rise will be huge guidance and will take the dollar index higher.

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Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, rose 0.04% to 110.26. Brent crude futures increased 0.23% to USD 90.83 per barrel.

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The Sensex was trading 23.85 points, or 0.04%, higher at 59,743.59, while the Nifty was up 2.05 points, or 0.01%, at 17,818.30.

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Foreign institutional investors (FIIs) have bought shares worth a net Rs 1,196.19 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net Rs 131.94 crore on September 20, as per provisional data available on the NSE.