RBI Decision Boosts Rupee Amid West Asia Crisis

The Indian rupee strengthened by 20 paise to settle at 95.08 against the US dollar on Wednesday after the Reserve Bank of India (RBI) kept its key policy rate unchanged for the fourth time in a row amid the West Asia crisis.

Forex traders pointed out that investor sentiments were supported by an overnight decline in crude oil prices and a weakness of the American currency in the overseas market. Additionally, a decrease in US treasury yields also contributed to the rupee's gain.

The rupee opened at 94.90 against the greenback and traded within a narrow range of 94.89-95.25 during the session before eventually closing at 95.08, which is higher by 20 paise from its previous close.