Rupee Closes at 95.58 Against US Dollar, Posting a 12-Paise Gain

Rupee Strengthens Against US Dollar Amid US-Iran Tensions

The Indian rupee strengthened by 12 paise to settle at 95.58 against the US dollar on Wednesday, as renewed tensions between the US and Iran and delays in negotiations kept investors cautious. The rupee's gain was also influenced by the strong American currency and weak domestic markets.

At the interbank foreign exchange market, the rupee opened at 95.60 against the US dollar, and touched an intra-day low of 95.79 against the American currency. By the end of Wednesday's close, the rupee was quoted at 95.58, up 12 paise from its previous closing.

In comparison to its performance on Tuesday, the rupee depreciated by 44 paise to close at 95.70 against the US dollar. | Tuesday | Wednesday | | --- | --- | | USD/INR | 95.70 | 95.58 | | Change | -44 paise | +12 paise |

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The upcoming RBI Monetary Policy Committee meeting, scheduled between June 3 and 5, has shifted the attention of investors. Forex traders are closely watching the developments leading up to the meeting, which is expected to have a significant impact on the rupee's value.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.07, down 0.10 per cent. Brent crude, the global oil benchmark, was trading down 3.02 per cent at USD 96.57 per barrel in futures trade. The decline in crude oil prices may support the rupee at lower levels.

On the domestic equity market front, the Sensex declined 141.90 points to settle at 75,867.80, while the Nifty dipped 6.55 points to 23,907.15. Foreign institutional investors offloaded equities worth Rs 1,042.70 crore on Wednesday, according to exchange data.