Mumbai (PTI): The rupee depreciated 47 paise to close at 88.69 against the American currency on Thursday on a strong US dollar, weak domestic markets, and a hawkish US Fed.

Forex traders said the US Federal Reserve slashed interest rates by 25 bps in its Federal Open Market Committee (FOMC) meeting. However, Fed Chair Jerome Powell's commentary was hawkish, trimming rate-cut expectations for December.

Moreover, month-end dollar demand from Oil Marketing Companies (OMCs) and foreign fund outflows may also weigh on the rupee.

At the interbank foreign exchange market, the rupee opened at 88.37, and later fell to an intra-day low of 88.74. The local unit finally settled at 88.69 against the greenback, registering a loss of 47 paise from its previous close.

On Wednesday, the rupee apprecia

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