The Indian rupee depreciated by 4 paise against the US dollar in early trade and is currently trading in a narrow range. The decline could be due to a muted trend in domestic equities. Traders are awaiting cues from the US Federal Reserve on the interest rate decision for the day. The potential for gains in the rupee is limited by the weakening of the Chinese currency due to their central bank’s rate cut considerations and the depreciation of the dollar index. Importers are advised to hedge against any declines, while exporters should wait for a pullback before taking action.
