Indian rupee strengthened against the U.S. dollar on Wednesday as two-week ceasefire between US and Iran has raised hopes that the West Asia conflict will end soon. Iran has also allowed the shipping traffic to pass through the Strait of Hormuz. Besides, the Brent crude oil prices have retreated to trade near $93 per barrel, which also favoured the rupee. Meanwhile, the Reserve Bank of India (RBI) has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25% and also decided to continue with the neutral stance in its latest Monetary Policy Committee (MPC) meeting amid rising global uncertainties. Further, the CPI inflation for 2026-27 is projected to be at 4.6% and real gross domestic product growth is projected at 6.9%. On the global front, the euro has strengthened against the dollar on Wednesday, to trade near $1.17 amid hopes of de-escalation in West Asia conflict.

Finally, the rupee ended at 92.54 (Provisional), strengthened by 52 paise from its previous close of 93.06 on Tuesday. The currency touched a high and low of 92.92 and 92.45 respectively.