The Indian Rupee gained 11 paise on Wednesday to close at 85.51 against the US dollar, and this was the fifth straight session of gains. The advance snapped a two-day flat performance, as the global mood brightened after the second day of trade talks between the US and China, with both nations making concessions on what can be done to ease tensions and preserve the agreement made during the prior round of talks in Geneva.
The rupee ended better than Tuesday at 85.62 according to the data. The currency has been gradually gaining over the last two days, even though it has been trading in a narrow range, mainly due to a general softness in the US dollar, and as volatility in the market has reduced. As noted by analysts, the rupee moved within a range of only around 20 paise in intraday trade, and the 10-day realized volatility fell to its lowest in more than two months in a Reuters report.
Asian currencies mostly traded in a range but ended up firm as regional markets cheered the relief in the trade war between the two largest economies in the world. The dollar index, which tracks the performance of the US dollar against the six leading currencies in the world, was lower by 0.07 points at 99.02. But there is still doubt, as a US federal appeals court on Tuesday said it would allow the sweeping tariffs imposed by former President Trump to stay in effect as it reviews the case further.
Meanwhile, parallel developments are being reported about the Trump administration, which is said to be supporting Treasury Secretary Scott Bessent to be the next Federal Reserve chair, which would shape the future of the US monetary policies. The next focus of the market is the US consumer price inflation figure due later today, which could provide crucial indications about the attitude of the Federal Reserve concerning interest rates.
In the meantime, crude oil prices recouped earlier losses. Brent crude jumped by 0.90% to $67.47 a barrel, and WTI advanced by 1.09% to $65.69 at 3.45 PM IST.
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