Mumbai: The rupee depreciated 21 paise to 88.43 against the dollar in early trade on Thursday, weighed down by the strength of the American currency after Fed Chairman Jerome Powell indicated that the rate cut in December is not given.

Forex traders said the dollar index rose to 99.05 and the 10-year yield to 4.07 per cent despite the 25 bps rate cut by the FED overnight.

At the interbank foreign exchange, the rupee opened at 88.37 against the US dollar before dropping to 88.43, down 21 paise from its previous close.

On Wednesday, the rupee had settled at 88.22 against the US dollar.

"The US dollar index rose from Wednesday to 99.02 after the FED Chair announced that another rate cut this year is 'not a foregone conclusion' as the dollar found support at lower levels even after the rat

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