By laksh5382 
Rupee It fell 3 paise to close at an all-time low of 84.94 (provisional) against the US dollar on Wednesday as traders await US Fed cues on the interest rate front.
Forex traders said dollar demand from importers as well as foreign banks, foreign fund outflows and a subdued trend in domestic equities further weighed on investor sentiments.
At the interbank foreign exchange, the rupee opened at 84.92 against the greenback and touched 84.95 during intra-day trade. The unit ultimately ended the session at an all-time low closing level of 84.94 (provisional) with a decline of 3 paise against the dollar.
On Tuesday, the rupee reached its lowest ever level of 84.91 against the US dollar.
“We expect the rupee to trade with a negative bias due to weak domestic markets and concerns of a slowdown in the economy. A stronger US dollar and FII outflows may put further pressure on the rupee,” said Anuj Chaudhary, research analyst at Mirae Asset Sharekhan. “
Traders can take cues from US current account balance and housing data. Investors can also keep an eye on the decision of the Federal Open Market Committee (FOMC) meeting. The US Fed is expected to cut interest rates by 25 bps to 4.5 percent.
“USDINR spot price is expected to remain in the range of 84.75 to 85.20,” Chaudhary said.
Moreover, rising trade deficit put pressure on the rupee. This increase in the trade deficit was largely due to record high gold imports in November.
India’s exports declined 4.85 per cent year-on-year to $32.11 billion in November, while the trade deficit widened to an all-time high of $37.84 billion due to a record rise in gold imports.
The country’s gold imports hit a record high of $14.86 billion in November, registering a four-fold increase mainly due to festival and wedding demand, according to commerce ministry data.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 percent higher at 107.
Global oil benchmark Brent crude rose 0.60 per cent to $73.63 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex closed at 80,182.20, down 502.25 points or 0.62 per cent, while the Nifty closed at 24,198.85, down 137.15 points or 0.56 per cent.
Foreign institutional investors (FIIs) sold ₹6,409.86 crore in the capital market on a net basis on Tuesday, according to exchange data.