The rupee opened higher against the greenback on Wednesday, as the dollar remained steady after the US Federal Reserve indicated a readiness to cut interest rates for the first time in more than a decade.

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At 09:10 AM, the rupee was trading at 69.52 a dollar, up 16 paise from its Wednesday’s close of 69.68. The home currency opened at 69.50 and touched a high and a low of 69.47 and 69.53 a dollar, respectively.

In the currency market, the dollar was on the defensive after the US Federal Reserve signalled it was ready to lower interest rates to combat global growth slowdown.

The Fed on Wednesday left interest rates unchanged as widely expected but said the case for lower rates was building, suggesting it could ease monetary policy as early as next month as it took stock of rising trade tensions and growing concerns about weak inflation.

The dollar index against a basket of six major currencies was little changed at 97.188 after losing more than 0.5 percent overnight.

In commodity markets, oil prices jumped as official data showed US crude stocks fell more than expected.

Brent crude futures had risen 82 cents, or 1.3 percent, to $62.64 by 0026 GMT. They dropped 0.5 percent on Wednesday.

Foreign institutional investors (FIIs) were net buyers in the capital markets, purchasing shares worth Rs 31.73 crore on Tuesday, according to exchange data.

In debt markets, the yields on the 10-year government bonds were down 1.04 percent to 6.77 percent from its previous close of 6.84 percent. Bond yields and prices move in opposite directions.