Rupee Slips 2 Paise Amid Dollar Rally and Rising Oil Prices

The Indian rupee traded in a narrow range on Wednesday and closed at 94.97 against the US dollar, recording a marginal loss of 2 paise.

This decline was largely due to weak local equities and a strong US dollar, which offset the support from foreign capital inflows.

Forex traders pointed out that the RBI is keeping a close eye on the rupee's fall, as Brent crude prices have risen to $95 per barrel and the dollar index is hovering around 99.80 due to renewed US-Iran tensions.

Market participants also raised the probability of a hike in interest rates by the US Federal Reserve in September, pushing US Treasury yields higher and triggering a broad dollar rally.