Rupee Touches One-Month High on Lower Oil Prices and Inflows

The Indian rupee reached its highest closing level in over a month on Wednesday, despite the Reserve Bank of India's decision to keep policy rates unchanged.

The currency opened 0.5% stronger at 94.92 against the US dollar, but gave up nearly half of its initial advance to settle at 95.1175 per dollar, its strongest closing level since July 7.

The rupee's appreciation was largely driven by lower crude oil prices, which had fallen more than 12% over the previous two sessions on hopes of a diplomatic breakthrough in the US-Iran conflict.

However, oil prices recovered on Wednesday after Yemen's Iran-backed Houthi rebels attacked a Saudi oil tanker in the Red Sea.