Rupee starts 22 paise down at 65.10 against dollar

The rupee on Wednesday got a sinking feeling on fiscal slippage worries and Fed chief Jerome Powell's commentary as it opened 22 paise down at 65.10 against the dollar.

The government is due to come out with a set of macro numbers -- fiscal deficit, GDP and IIP -- later in the day.

Sustained month-end dollar demand from importers and banks amid heavy capital outflows accelerated the rupee slide.

The local currency on Tuesday settled nearly 9 paise down at 64.88 against the American unit.

The government will announce data on third quarter gross domestic product (GDP) after market hours on Wednesday. GDP growth had recovered to 6.3 per cent in Q2 September 2017 from 5.7 per cent recorded in the preceding June quarter.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 906.86 crore on Wednesday, as per provisional data. On the other hand, domestic institutional investors (DIIs) bought shares worth a net Rs 1,046.67 crore.

Meanwhile, domestic equity markets opened in the red tracking global peers. The BSE Sensex opened down 190 points, or 0.56 per cent, at 34,155. The NSE Nifty index was lower by 65 points, or 0.62 per cent, at 10,489.

Government bonds (G-Secs) recovered on Wednesday following fresh demand from corporates and banks. The overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking system.