Rupee rises 10 paise to 96.65 against U.S. dollar in early trade

The Indian rupee strengthened by 10 paise to trade at 96.65 against the U.S. dollar in early trade on Wednesday, offering modest relief after recent turbulence in currency markets.

Forex traders cautioned that the rupee remains under considerable pressure from a combination of macroeconomic headwinds. Global dollar strength, with the dollar index trading near multi-month highs, continues to squeeze emerging-market currencies, while elevated Brent crude prices hovering near $102 per barrel add to the strain on India's import bill.

Equity markets offered little comfort, with the benchmark Sensex declining in early trade after the Reserve Bank of India signalled further monetary tightening. Among the 30 Sensex constituents, ITC, Adani Ports, Bharat Electronics, Bajaj Finance, Bajaj Finserv and InterGlobe Aviation were among the prominent laggards, reflecting broader investor caution as higher interest rates threaten to dampen corporate earnings and consumer demand in the months ahead.