Rupee strengthens sharply against dollar on Wednesday

Indian rupee strengthened sharply against the dollar on Wednesday as heavy buying in domestic equities and persistent foreign capital inflows strengthened investor sentiment. Besides, softening crude oil prices and easing inflationary pressures supported the domestic unit. Traders took some encouragement as State Bank of India's (SBI) Chairman Dinesh Khara said that things might get better on the inflation front towards the end of September. He said the supply side constraints getting addressed and crude oil prices trending low will help ease the situation. Some support also came in as Moody's Analytics in a recent report on the Asia Pacific (APAC) region said global oil prices are expected to fall to almost $70 per barrel by the end of 2024. On the global front, the dollar held onto gains against other major currencies on Wednesday, ahead of the release of minutes of the U.S. Federal Reserve's July meeting that could give further clues about the pace of further interest rate hikes.

Finally, the rupee ended at 79.45 (Provisional), stronger by 29 paisa from its previous close of 79.74 on Friday. The currency touched a high and low of 79.48 and 79.26 respectively.