Mumbai Sep 22 PTI The rupee declined by 26 paise to close at a nearly four-week low of 7387 against the US currency on Wednesday due to a stronger dollar in overseas markets ahead of the outcome of the US Fed meeting and worries over Chinas Evergrande situation Forex traders said investors are awaiting cues on taper timeline and US Feds projections on interest rates The US Fed meeting outcome will be announced later in the day At the interbank foreign exchange market the local currency opened at 7370 and witnessed an intra-day high of 7366 and a low of 7393 against the US dollar in day trade The local unit finally settled at 7387 a dollar the lowest closing level since August 26 On Tuesday the rupee had settled at 7361 against the US dollar The dollar index which gauges the greenbacks strength against a basket of six currencies was trading 002 per cent higher at 9322 The Indian Rupee depreciated against the dollar on Wednesday tracking losses in regional currencies Most Asian currencies were weaker ahead of the Fed decision and worries about the Chinas Evergrande situation and weighed on the local unit said Sriram Iyer Senior Research Analyst at Reliance Securities Investors are wary of the Fed meeting tonight and some are expecting that the Federal Reserve could provide more hints about scaling back its asset purchases later Tonights Fed meeting will be watched closely The market is expecting US Fed to announce a timeline on taper issue inflation forecast and update its interest rate projection via dot plot We expect USDINR to remain within a range of 7340-7420 over the near term said Anindya Banerjee DVP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd Meanwhile HDFC Bank economists in a report said that the rupee can come under pressure as emerging market currencies face headwinds because of the events surrounding Evergrande in China We remain cautious over this turning into a broader risk-off scenario which could mean increased pressure on EM currencies including the INR rupee while the dollar remains bid the report by a team led by Abheek Barua said Evergrande Chinas largest realty player is under financial stress It has over USD 300 billion in liabilities and has a USD 835 million interest payment on a bond due on Thursday and another USD 475 million next week The world is closely watching the events particularly to see if the company honours its commitments and some watchers are comparing it with Lehman Brothers case in the US that led to the 2008 global financial crisis Brent crude futures the global oil benchmark advanced 124 per cent to USD 7528 per barrel On the domestic equity market front the BSE Sensex ended 7794 points or 013 per cent lower at 5892733 while the broader NSE Nifty declined 1535 points or 009 per cent to 1754665 Foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth Rs 104192 crore as per exchange data PTI DRR MR MR