Rupee depreciates another 8 paise to 62.09 against dollar

“Rupee was immediately seen appreciating (after RBI policy) but it was a short-lived impact. Later in the session, rupee was seen weakening ahead of the next important event of the day—the Fed's decision on quantitative easing, which will decide the further direction of the market,” said Abhishek Goenka, CEO of India Forex Advisors.

The 30-share benchmark Sensex rose 247.72 points, or 1.2 per cent, after six straight days of losses. Foreign institutional investors bought shares worth a net Rs 249.93 crore yesterday, according to provisional data.

The dollar index was up 0.07 per cent ahead of the outcome of the US Federal Reserve meeting later today on the future of stimulus measures.

Forward dollar premiums declined on fresh receipts by exporters. The benchmark six-month forward dollar premium payable in May moved down to 243-245 paise from 245-247 paise previously and far-forward contracts maturing in November also closed lower at 486-1/2 to 488-1/2 paise from 490 to 492-1/2 paise.

The RBI fixed the reference rate for the dollar at 61.9176 and for the euro at 85.2692.

The rupee dropped to 101.52 against the pound from the overnight close of 101.06 and remained weak at 85.40 against the euro from 85.34. It softened to 60.32 per 100 Japanese yen from 60.26.