The Indian rupee fell 16 paise to close at 96.32 (provisional) against the US dollar on Wednesday, weighed down by heightened tensions in West Asia and a rise in global crude oil prices. However, positive sentiments in the domestic equity markets and a weaker greenback prevented a sharper decline in the local unit. Indian shares pared early gains to end marginally higher on Wednesday as escalating Middle East tensions raised concerns that the United States and Iran may return to an all-out war. Markets opened on a positive note and sustained positive momentum during afternoon session after U.S. President Donald Trump backed away from his plan to impose a 20 percent charge on cargo shipments through the Strait of Hormuz and softer-than-expected U.S. inflation data curbed bets for a near-term rate hike by the Federal Reserve. The NSE Nifty 50 closed at 24,078.50 (+0.11%) and the BSE Sensex settled at 77,185.43 (+0.17%) following a highly volatile trading session. At the interbank foreign exchange market, the rupee opened at 96.12 and traded in the range of 96.04-96.32 during the session. It settled at 96.32 (provisional), down 16 paise from its previous close.

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