Mumbai

Therupee appreciated 13 paise to close at 95.81 against the US dollar on Wednesday tracking an overnight decline in the US dollar index and as crude oil prices retreated from their elevated levels. Forex traders said easing US Treasury yields from multi-decade highs also supported the rupee. However, weak domestic markets capped sharp gains for the Indian currency. At the interbank foreign exchange market, the rupee opened at 95.87, then lost ground to touch an intraday low of 95.98 against the American currency. At the end of Wednesday’s trading session, the domestic unit was quoted at 95.81 against the greenback, higher by 13 paise over its previous close. On Tuesday, the rupee settled marginally higher at 95.94, just a tad over the psychologically crucial 96 per dollar level. “We expect the rupee to trade with a negative bias on uncertainty over the US-Iran deal and risk aversion in global markets. Concerns over a strong dollar and elevated US treasury yields may also pressurise the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan. “Hopes that the US and Iran officials are expected to talk through mediators may support the rupee at lower levels. Traders may take cues from ADP non-farm employment, core PCE price index and final GDP data from the US,” Choudhary noted. Meanwhile, the dollar index, which gauges the strength of the greenback against a basket of six currencies, was trading at 101.23, lower by 0.14 per cent. According to traders, the rupee is trading in a narrow range as dollar sales by state-run banks on behalf of the Reserve Bank of India in both spot and forward markets are keeping the USD/INR pair under the 96.00 level.