Mumbai

The rupee fell 12 paise to close at 95.74 (provisional) against the US dollar on Wednesday, weighed down by the broad strength of the American currency and a slight recovery in crude oil prices from lower levels.

Forex traders said the dollar strengthened on hawkish comments from US Federal Reserve officials, raising expectations of a rate hike by the US Fed in 2026. However, positive domestic markets supported the rupee at lower levels.

At the interbank foreign exchange market, the rupee opened at 95.58 against the US dollar, then gained ground and touched an intraday high of 95.57 against the American currency in intraday trade.

The domestic unit saw an intraday low of 95.76 and ended the trading session on Wednesday at 95.74 (provisional) against the American currency, lower by 12 paise from its previous close.

On Tuesday, the rupee appreciated 16 paise to close at 95.62 against the US dollar.

"We expect the rupee to trade with a positive bias as hopes of a diplomatic solution between the US and Iran amid indirect talks at the UNGA may improve global risk sentiment. Overall weakness in crude oil prices may also support the rupee," said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.

However, a strong dollar and any fresh tensions between the US and Iran may cap sharp upside. Traders may take cues from flash manufacturing and services PMI data from the US. USD-INR spot price is expected to trade in a range of 95.50 to 95.95, Choudhary added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.87, higher by 0.27 per cent.

Brent crude, the global oil benchmark, was trading higher by 0.26 per cent at USD 99.51 per barrel in futures trade.

On the domestic equity market front, Sensex rose 299.17 points to settle at 74,828.25, while the Nifty closed 117.80 points higher at 23,446.80.

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Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,809.99 crore on a net basis on Tuesday, according to exchange data.