The Indian rupee is holding on to losses registered in the previous session amidst elevated international oil prices and renewed geopolitical concerns. However, a pull back in dollar index under 101 mark after US data showed softer-than-expected inflation data that reduced expectations for Federal Reserve interest rates hikes is seen limiting further losses in the counter. The annual US inflation rate slowed to 3.5% in June from 4.2% in May. Meanwhile, Fed Chair Kevin Warsh reiterated the central bank's commitment to restoring price stability during congressional testimony on Tuesday. INR opened at Rs 96.12 per dollar and slipped to a low of 96.19 so far during the day. Yesterday, depreciated 62 paise to close at 96.30 against the US dollar. Local shares open higher on Wednesday as softer U.S. inflation data helped traders to scale back their expectations for Federal Reserve interest rate hikes. However, gains remain limited as oil prices extend gains for a third straight session after the U.S. reinstated its blockade of Iranian ports and President Donald Trump warned of additional strikes on Iran. The NSE Nifty 50 is trading at 24,206 (up 0.63%) and the BSE Sensex is at 77,510.42 (up 0.59%), rebounding firmly after a previous session slump.

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