Rupee advances on positive cues

Mumbai: The rupee gained 13 paise to settle at 95.15 (provisional) against the US dollar on Wednesday, after the Reserve Bank of India kept the key policy rate unchanged for the third time in a row in FY27 amid the West Asia crisis.

Forex traders said investor sentiments were supported by an overnight decline in crude oil prices and a weakness of the American currency in the overseas market. Moreover, a decline in US treasury yields also supported the rupee.

At the interbank foreign exchange, the rupee opened at 94.90 against the greenback and traded in a tight range of 94.89-95.25 during the session. It eventually settled at 95.15, higher by 13 paise from its previous close. On Tuesday, the rupee appreciated 9 paise to close at 95.28 against the American currency.

“We expect the rupee to trade with a slight positive bias on improved global risk sentiments amid de-escalation of tensions between the US and Iran. The US said that a deal with Iran could be reached soon. Traders may take cues from ISM services PMI data from the US.