If the Fed cuts its monthly asset purchase programme, the rupee will swing to 64.20 per dollar level, according to technical charts. However, it should strengthen thereafter, said a currency dealer. Photo: Pradeep Gaur/Mint

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Mumbai: The Indian rupee strengthened in early trade after opening lower as the markets continued to expect tapering off of the US asset purchase programme after the Federal Reserve concludes its meeting on Wednesday.

The Indian currency opened at 63.45 per dollar on Wednesday compared with its previous close of 63.3725. However, within the first 15 minutes of trade, the rupee recovered and strengthened to 63.30 per dollar.

The Indian currency had earlier this week risen to as much as 62.40 per dollar level.

According to foreign exchange dealers, global markets have already factored in $10-15 billion cut in monthly asset purchase programme by the Federal Reserve from its present budget of buying $85 billion of bonds a month.

If that happens, the rupee will swing to 64.20 per dollar level, according to technical charts. However, it should strengthen thereafter, said a currency dealer.

Yield on the 10-year bond was at 8.4321%, down from its previous close of 8.446%
 kaushal singh PGDM 3SEM