Rupee Strengthens as Hopes of US-Iran Agreement Fade

The Indian rupee strengthened by 3 paise to close at 95.33 against the US dollar on Wednesday, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded.

Forex traders said Brent crude is moving towards $90 per barrel amid risk aversion in global markets.

The rupee opened at 95.40 against the greenback and traded in a range of 95.24-95.43 during the session, eventually settling at 95.33 (provisional), higher by 3 paise from its previous close.

Amit Pabari, MD of CR Forex Advisors, said that the US CPI print is a key factor for the USD/INR pair and that a hotter-than-expected CPI would strengthen expectations of a September Fed rate hike, pushing yields and the dollar higher.