Decline in INR partially offset by positive start to local equities

The Indian rupee fell 3 paise to 95.91 against the US dollar in early trade on Wednesday, facing pressure from a strong American currency and outflow of foreign funds. Positive domestic equity markets, however, supported the local currency, even as crude oil prices remained elevated amid heightened tension in West Asia. Indian shares were modestly higher on Wednesday after falling sharply in the previous session on concerns over rising oil and U.S. bond yields amid escalating Middle East tensions. Underlying sentiment remained cautious somewhat ahead of the U.S. Federal Reserve's interest-rate decision later in the day, with markets pricing in a 92.4 percent chance of a 25-bps rate hike. The benchmark 30-share BSE Sensex was up 242 points, or 0.3 percent, at 74,246 while the NSE Nifty index edged up by 57 points, or 0.3 percent, to 23,175. At the interbank foreign exchange market, the rupee opened at 95.89 against the US dollar and fell further to 95.91, trading 3 paise lower from ...