Rupee depreciates against US dollar Rupee depreciated 5 paise to 63.96 paise against dollar in early trades on Thursday, tracking cues from the US Federal Reserve's policy statement released overnight. The two day policy review by the US Fed concluded on Wednesday. In the statement, the Fed said that the underutilisation of labor resources has diminished since early this year and that inflation has continued to run below the Committee's longer run objective. This has raised chances that the US Fed may start hiking interest rates in the September policy review.The dollar rose to its highest level this week on Thursday after the U.S. Federal Reserve took another small step towards raising interest rates later this year, reinvigorating those betting on another surge for the dollar if and when the Fed delivers.As expected, the Fed gave no clear indication on timing but what it did say was enough to encourage those analysts who have been sticking with forecasts for a September rate rise even as the market priced them out in recent weeks.In early trade in Europe, the euro was down more than a cent against the dollar compared with levels seen before the Fed made its monthly policy statement on Wednesday, falling back to around $1.0950, its lowest since last Friday.The dollar index rose a further 0.4 percent from the U.S close to 97.377.It was also 0.2 percent higher at 124.2.
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