Rupee Strengthens 17 Paise on Weak US Dollar and Double Bond Buyback

The Indian rupee strengthened by 17 paise to 95.56 against the US dollar in early trade on Thursday, following a weak US dollar triggered by the US Treasury's announcement to double its buyback operations for longer-dated Treasury bonds.

This move will push US long-term yields lower and reduce the dollar's yield advantage, said Amit Pabari, MD of CR Forex Advisors. The dollar index fell to 98.82, its lowest level since late May, after the announcement.

The rupee opened at 95.57 before rising to 95.56, higher by 17 paise from its previous close. On Wednesday, it remained almost flat, ending just 1 paisa higher at 95.73 against the US dollar.

However, elevated oil prices remain a major concern for India's import bill, with Brent crude trading higher by 0.32 per cent at $91.91 per barrel in futures trade.