The rupee opened lower against the US dollar on Wednesday, as the greenback rose to a 3-week high ahead of the Federal Reserve testimony starting later in the day.

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At 09:10 AM, the rupee was trading at 68.62 a dollar, down 11 paise from its Tuesday’s close of 68.51. The home currency opened at 68.64 and touched a high and a low of 68.61 and 68.64 a dollar, respectively.

In the currency market, the dollar traded near a three-week high against its peers, as investors reduced bets on aggressive US interest rate cuts.

The dollar edged up to 108.975 yen in Asia, which was its strongest level since May 31.

US Federal Reserve chief Jerome Powell’s comments in two-day testimony to Congress beginning on Wednesday will be closely watched to determine whether traders will continue to pare bets for deep interest rate cuts, which could help the dollar continue its rebound against major currencies, reported Reuters.

In commodity markets, after an industry group reported that US stockpiles fell for a fourth week in a row.

Brent was up 61 cents, or 1 percent, at $64.77, having earlier hit $64.95.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 401.99 crore Monday, while domestic institutional investors bought shares worth Rs 321.13 crore, as per provisional data.

In debt markets, the yields on the 10-year government bonds were up 0.06 percent to 6.59 percent from its previous close of 6.59 percent. Bond yields and prices move in opposite directions.