The rupee appreciated 16 paise to finish at 87.47 against the US greenback on Wednesday, buoyed by a weak buck and constructive sentiment in home fairness markets. Traders stated easing crude oil costs and cooling inflation additional supported the native foreign money, though uncertainties over commerce tariffs and persistent overseas fund outflows capped sharper positive factors.(*16*)At the interbank overseas trade, the home unit opened at 87.63 and moved between an intraday low of 87.72 and a excessive of 87.38 earlier than settling at 87.47, up 16 paise from the earlier shut. On Tuesday, the rupee had risen 12 paise to finish at 87.63, PTI reported.“The rupee experienced its biggest one-day appreciation since July 3, driven by a decline in the US dollar. The dollar weakened amid expectations of a September interest rate cut from the Federal Reserve, following a decline in US inflation,” stated Dilip Parmar, Research Analyst, HDFC Securities.Parmar added that positive factors in Indian equities and different Asian currencies, a fall in crude oil costs, and cooling home Consumer Price Index (CPI) inflation additional bolstered the rupee. Brent crude futures fell 0.54% to $65.76 per barrel. The greenback index, which measures the buck against six main currencies, slipped 0.44% to 97.66.Anuj Chaudhary, Research Analyst at Commodities and Currencies, Mirae Asset Sharekhan, stated, “The rupee rose sharply on cooling inflation and strength in the domestic markets. India’s CPI inflation cooled off to 1.55% in July 2025 vs the forecast of 1.76% and 2.1% in June. The US Dollar too fell as CPI data was in line with estimates, raising odds of a rate cut by the Fed in September.”Retail inflation slowed to an 8-year low of 1.55% in July, transferring beneath the Reserve Bank’s consolation zone for the primary time since January 2019, helped by subdued meals costs, authorities information confirmed. The RBI is tasked with preserving CPI inflation at 4%, with a margin of two% on both facet.Chaudhary added that sliding crude oil costs additionally supported the rupee. “We expect the rupee to trade with a positive bias on risk sentiments in the global market and a weakening US dollar. Softening inflation and declining crude oil prices may further support the domestic currency. However, the ongoing trade tariff war between India and the US and FII outflows may cap sharp upside. Investors may remain cautious ahead of US President Donald Trump and Russian President Vladimir Putin’s meeting on Friday,” he stated.In equities, the Sensex climbed 304.32 factors to shut at 80,539.91, whereas the Nifty superior 131.95 factors to finish at 24,619.35. Foreign Institutional Investors offered shares value Rs 3,644.43 crore on Wednesday, trade information confirmed.