The Indian rupee opened 24 paise down at 71.36 against the American currency on Thursday after the US Federal Reserve cut its benchmark interest rate. At the interbank foreign exchange the domestic currency witnessed heavy volatility in early trade.
The rupee opened at 71.36 per US dollar then touched a high of 71.15 and a low of 71.37. On Wednesday, rupee had settled for the day at 71.24 against the US dollar. Forex traders said investors turned cautious after the US Fed dimmed hopes of further rate cuts.
The US Federal Reserve Chairman Jerome Powell downplayed concerns in recent days about a cash crunch in US financial markets and said that the situation says little about the real economy.