The rupee on Wednesday opened 14 paise higher at 69.55 against the American currency as dollar weakened ahead of the US central bank's outcome.
The local currency on Tuesday closed at 69.69 against the US dollar.
There are expectations that the US Fed could take a pause on rates but provide cues for its stance for coming meetings.
“Fed governor commentary is expected to remain dovish and that could keep the greenback under pressure. Today, USDINR pair is expected quote in the range of 69.40 and 70.05-70.20,” brokerage firm Motilal OswalNSE 1.42 % Financial Services said.
Meanwhile, the domestic equity market opened in the green following firm global cues. The BSE Sensex advanced over 250 points to 39,314, while the NSE Nifty index was trading 69 points, or 0.59 per cent, up at 11760 in early trade.
Most of the Asian markets were trading higher on Wednesday as investors hoped the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.
The Dow ended on Tuesday with gains of 1.35 per cent, while the S&P 500 and Nasdaq gained 0.97 per cent and 1.39 per cent, respectively.
Source: economictimes.indiatimes.com