Rupee Appreciates 13 Paise Against Dollar Amid Easing US Yields

The Indian rupee has appreciated against the US dollar after a brief dip, closing at 95.81 (provisional) on Wednesday. This marks an increase of 13 paise from its previous close.

Forex traders attribute this rise to several factors, including easing US Treasury yields from multi-decade highs and the retreat of crude oil prices from their elevated levels. Additionally, the overnight decline in the US Dollar index has also contributed to the rupee's appreciation.

However, weak domestic markets have capped sharp gains for the domestic unit, preventing it from reaching higher levels. At the interbank foreign exchange market, the rupee opened at 95.87 and touched an intraday low of 95.98 against the American currency before closing at 95.81.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, expects the rupee to trade with a negative bias due to uncertainty over the US-Iran deal and risk aversion in global markets. He also noted that hopes of US and Iran officials talking through mediators may support the rupee at lower levels.