Spot rupee ended at 95.69/70 to a dollar compared to 96.26/27 opening level. Expectations of an interim US-Iran deal improved sentiment in the domestic markets. Equity market benchmarks ended about 0.3 higher today.

DXY is trading near a six week high at 99.25 level, fuelled by US-Iran tensions and hawkish FOMC minutes. Disputes over Iranian uranium stockpiles and Strait of Hormuz tolls kept investors cautious, with markets pricing a 40 probability of a December Fed rate hike.

The rupee opened tad lower this morning at 96.25 levels, as trader has awaited possible RBI intervention to support the currency. Falling oil prices and signs of a US-Iran deal helped the RBI push the pair down to 96.20, preventing it from slipping beyond 97 levels.

DXY is trading firmer at 99.24 level today. Markets are caught in range while Brent crude futures rose about 2 yesterday, partially recovering from the nearly 6 drop in the previous two sessions, as mixed signals from the US and Iran continue to fuel doubts that a near-term deal can be reached or that the Strait of Hormuz could be fully reopened. Iran’s Supreme Leader has issued a directive that the country’s near-weapons-grade uranium should not be sent abroad, hardening Tehran’s position on one of the key US demands in peace talks.