Rupee falls 2 paise to close at 94.97 against US dollar

The rupee traded in a tight range and settled for the day at 94.97 (provisional) on Wednesday, recording a marginal loss of 2 paise as the support from foreign capital inflows was negated by weak local equities and a strong US dollar.

Forex traders said the RBI is keeping a tab on the rupee's fall as Brent crude prices have risen to $95 per barrel and the dollar index is hovering around 99.80 on a bout of risk aversion on renewed US-Iran tensions.

Moreover, market participants have raised the probability of a hike in interest rates by the US Federal Reserve in September, pushing US Treasury yields higher and triggering a broad dollar rally.

Investor sentiment also impacted after the 10-year US Treasury yields rose above 4.8 per cent - the highest since January 2025 — following softer-than-anticipated US economic data. At the interbank foreign exchange market, the rupee opened at 94.97 and touched an intraday high of 94.83 and a low of 94.99 during the session. At the end of Wednesday's trading session, the rupee was quoted at 94.97 (provisional), lower by 2 paise from its previous close.