Mumbai, Sep 14 (PTI) The rupee depreciated by 43 paise to 79.60 against the US dollar in opening trade on Wednesday, as higher-than-expected US CPI print resulted in massive risk-off sentiments.

At the interbank foreign exchange market, the rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its last close. In initial deals, the local unit also touched 79.54 against the dollar.

Also Read | #Inflation in #Germany Soared to a Record Level of 7.9 Per Cent in August for the Second … – Latest Tweet by IANS India.

On Tuesday, the rupee appreciated by 36 paise to close at an over one-month high of 79.17 against the dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.03 per cent to 109.77.

Also Read | Tesla & SpaceX CEO Elon Musk Becomes 'Naughtius Maximus' on Twitter.

Global oil benchmark Brent crude futures fell 0.10 per cent to USD 92.91 per barrel.

The US August CPI came in higher than expected at 8.3 per cent year-on-year and 0.6 per cent month-on-month.

"The higher-than-expected print has raised the prospect of more aggressive monetary policy tightening by the US Fed. Markets now expect the terminal Fed Funds rate to be 4.25 per cent. Markets are also attributing a 20 per cent chance of a 100 basis point hike in the policy next week," according to IFA Global Research Academy.

Higher than expected US CPI print has resulted in massive risk-off moves across assets, it said, adding that the dollar has turned around overnight and strengthened across the board.

On the domestic equity market front, the 30-share BSE Sensex was trading 559.31 points or 0.92 per cent lower at 60,011.77, while the broader NSE Nifty was lower by 155.20 points or 0.86 per cent to 17,914.85.

Foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth Rs 1,956.98 crore, as per exchange data.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)