Rupee Closes Stronger For Third Day Against US Dollar

The Indian rupee ended higher for third session in a row against the US dollar on Wednesday, following a series of positive developments in global trade landscape and domestic matters. The domestic unit settled seven paise stronger at 85.28 against the greenback.

Earlier in the day, the rupee had opened 28 paise stronger at 85.07 against the the dollar. It had settled at 85.35 a dollar on Tuesday, according to Bloomberg.

"The pair is likely to trade within a broad range of 84.50–85.50 in the near term. Every uptick should be viewed as a selling opportunity unless the pair closes decisively above the 85.80 level , which would indicate a potential shift in the current trend," said Amit Pabari, director, CR Forex Advisors.

The dollar index declined for second day in a row Wednesday as risk-on sentiment continued to recover after US inflation fell more than expected. The positive economic data came shortly after the US and China decided to reduce tariffs on each other, easing mounting tension over existing international trade system between two largest economies.

The dollar index was trading 0.62% down at 100.38 as of 3:39 p.m.

Oil futures extended losses as supply worries weighed on investors' mind following US President Donald Trump's recent remarks on Iranian oil exports.

Brent crude was trading 1.37% down at $65.72 a barrel as of 3:40 p.m.