Rupee Settles at 94.97 Amid Renewed Geopolitical Tensions

The Indian rupee traded in a narrow range and closed at 94.97 on Wednesday, registering a marginal loss of 2 paise due to weak local equities and a strong US dollar.

Forex traders pointed out that the Reserve Bank of India is keeping an eye on the rupee's decline as Brent crude prices rose to $95 per barrel and the dollar index hovered around 99.80 on account of renewed US-Iran tensions.

Market participants believe there's a higher likelihood of a rate hike by the US Federal Reserve in September, which has pushed up US Treasury yields and triggered a broad dollar rally.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said they expect the rupee to trade with a slight negative bias amid renewed geopolitical tensions, but any de-escalation of tensions may support the rupee at lower levels.