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Rupee vs Dollar (INR vs USD) Update: The rupee began Wednesday's trade on a stronger note against the US dollar, opening at 87.82 against its previous close of 88.05. That marked a gain of 23 paise -- or 0.3 per cent -- against the greenback. The rupee traded within the 87.81-87.82 band against the American currency, supported by weakness in the greenback amid expectations of Fed rate cut later in the day.

However, the domestic currency was not out of the woods. It was within 65 paise of an all-time low registered against the dollar last week. 

All eyes will be on the Fed's upcoming rate decision (due late on Wednesday India time) for itd impact on the dollar and other major currencies including the rupee.

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Analysts say that Fed rate cut hopes, weakness in the greenback overseas, rising crude oil rates and US-India trade talks continue to influence the rupee in the forex market.

Domestic equity benchmarks registered mild gains, with the Sensex crossing 82,700 and the Nifty50 coming within eight points of the 25,350 mark amid buying in financial, IT and energy shares. Three stocks entered the listed space: Urban Company, Dev Accelerator and Shringar House of Mangalsutra.

Here's a summary of key cues for the domestic forex market:  

Crude Oil: Oil benchmark Brent edged higher to trade around $67.3-$67.4 per barrel levels amid growing risks about supply risks emanating from geopolitical tensions. Higher oil rates tend to put pressure on the rupee, given India meets four-fifths of its oil requirement through imports. 

FII Flows: Foreign institutional investors net purchased Indian equities worth Rs 308.3 crore in the spot makret on Tuesday, according to provisional exchange data. However, FII outflows stand at Rs 10,204.5 crore for the month. FII inflows support the rupee.

Dollar Index: The index -- which measures the greenback against six currencies other than the rupee -- hovered around two-month lows near 96.7.

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