The rupee edged up 1 paisa to 83.02 against the US dollar on Wednesday ahead of the announcement of the key US Fed policy decision later in the day.

At the interbank foreign exchange market, the rupee opened higher at 83.00 against the previous close of 83.03 in line with firm domestic stock markets.

The rupee traded at 83.02, up 1 paisa, in early morning deals.

The local unit fell 13 paise to settle below the 83 level for the first time in the past month due to a spike in crude oil prices and foreign fund outflows. The rupee has declined in the past seven straight sessions against the US dollar.

Also read: Crude oil dips as market turns cautious awaiting US Fed meeting outcome

The US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.40 per cent higher at 103.85.

Brent crude futures, the global oil benchmark, were trading at a multi-month high of $87.24 per barrel.

On the domestic equity market front, the 30-share BSE Sensex benchmark rose 236.33 points to 72,248.38. The broader Nifty gained 67.60 points to 21,885.05.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they bought shares worth ₹1,421.48 crore, according to exchange data.

Analysts said that the policy review by the Fed to be announced later in the day will be crucial. The tone of the Fed's statements will likely impact the dollar's trajectory.