Indian Currency: Domestic stock markets saw a firm trend on Wednesday. The Sensex rose 287.94 points to 84,916.10, while the Nifty 50 gained 86.65 points to trade at 26,022.85.

Rupee vs Dollar: The Indian rupee traded in a narrow range against the US dollar in early trade on Wednesday, amid a meeting of the US Federal Reserve, the central bank. Support from positive domestic stock markets was offset by rising demand for the dollar at the end of the month.

According to forex traders, the Indian currency is primarily influenced by geopolitical developments. They noted that the Reserve Bank of India (RBI) is also actively intervening on both the buying and selling sides to keep the rupee within the 87.50 to 88.50 range.

Slight strength in rupee

The rupee opened at 88.21 per dollar in the interbank foreign exchange market. It then touched a low of 88.34 and a high of 88.18 against the US dollar, showing a gain of 11 paise over its previous close. 

A day earlier, on Tuesday, the rupee had closed at 88.29 per dollar. Meanwhile, the dollar index, which gauges the dollar's position against a basket of six major currencies, rose 0.14 percent to 98.81.

Stock market boom

Domestic stock markets saw a firm trend on Wednesday. The 30-share BSE Sensex rose 287.94 points to 84,916.10, while the NSE Nifty 50 gained 86.65 points to trade at 26,022.85. In the international market, Brent crude fell 0.08 percent to $64.35 per barrel. According to stock market data, foreign institutional investors (FIIs) made net purchases of shares worth ₹10,339.80 crore on Tuesday.

It's worth noting that the US Federal Reserve is meeting today to discuss policy rates. Market experts believe the Federal Reserve may cut interest rates this time. If this happens, borrowing will become cheaper, boosting industry and consumption, while the US economy could accelerate further.