The Indian rupee strengthened by 7 paise to reach 83.24 against the US dollar (Dh22.68) on Wednesday, driven by a decrease in U.S. Treasury yields ahead of the Federal Reserve minutes, continuing its recent upward trend.
On Tuesday, the currency closed at 83.3050 against the US dollar, a slight increase from 83.3350 on Friday. The dollar/rupee pair saw a decline from 83.50 on Friday and edged lower on Tuesday.
Forex traders noted that the rupee faced resistance due to negative sentiment in the domestic equity market and foreign fund outflows. Most Asian currencies experienced marginal gains, while the dollar index and U.S. Treasury yields both decreased as they awaited the minutes of the Fed's recent meeting.
During the meeting, the Fed indicated its inclination towards reducing borrowing costs, while also acknowledging higher inflation readings in the January-March quarter.
