“Today, USDINR pair is expected to quote in the range of 71.70 and 72.20.”
Against a basket of currencies the dollar last treaded at 97.993.
Forex traders said the rupee received a leg-up after China said it will strive to reach 'phase one' trade deal with the US.
This means bond market has already assumed that further rate cuts are not coming or will be sparse.
Investor sentiment towards most Asian currencies soured over the past two weeks.
In the last couple of sessions, rupee consolidated in a narrow range.
The Chinese yuan fell to a three-week low in onshore trade on concern.
Fresh foreign fund inflows and a rally in domestic stocks restricted the fall for the local unit, forex traders said.
“The proposal is presently under consideration,” he said in a written reply to a question in Lok Sabha on whether the government proposes to provide foreign exchange loan at cheaper rate of interest to the exporters.
On Tuesday, the local unit had settled at 71.71 against the greenback.
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