Overview

• The rupee strengthened to roughly 87.8 against the dollar, its best level in more than two weeks, after opening at 87.82 and later closing near 87.84 on Wednesday.
• Markets largely expect a 25-basis-point U.S. Federal Reserve rate cut, with the dollar index hovering near 96.7 and softer Treasury yields supporting risk currencies.
• Negotiators Brendan Lynch and Rajesh Agrawal held talks in New Delhi that U.S. officials described as positive, even as earlier U.S. tariffs of about 50% on Indian goods remain a headwind.
• RBI firepower underpinned sentiment, with forex reserves rising $4.038 billion to $698.268 billion in the week to Sept. 5 and traders citing stepped-up intervention, including reported dollar sales in offshore markets.
• Flows and commodities offered a mixed backdrop, with FIIs net selling Rs 1,268.59 crore on Monday before a Rs 308.32 crore net buy on Tuesday and Brent crude near $68 a barrel.