Rupee falls 47 paise to 75.76 against U.S. dollar in early trade

On Tuesday, the rupee had climbed 24 paise to close at 75.29 against the U.S. dollar.

Snapping its three-day winning streak, the rupee tanked 47 paise to close at 75.76 (provisional) against the U.S. dollar on Wednesday, tracking a strong American currency in the overseas market and a negative trend in domestic equities.

Forex traders said the expectations of rate hikes by the U.S. Fed to rein in decades-high inflation are keeping the dollar index buoyant, a key headwind for the Indian rupee.

At the interbank foreign exchange market, the rupee opened at 75.50 against the American currency but lost ground and settled at 75.76, down 47 paise from the previous close.

On Tuesday, the rupee had climbed 24 paise to close at 75.29 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04% higher at 99.51.

Global oil benchmark Brent crude futures jumped 1.55% to $108.29 per barrel.

According to Dilip Parmar, Research Analyst, HDFC Securities the rupee snapped its winning streak and was the worst performer among Asian currencies as Fed members spoke about balance-sheet reduction along with rate hikes.