The Indian Rupee registered strong gains against the US Dollar on Wednesday, marking its best performance in two weeks. Positive momentum built up in the market as trade talks between India and the US are set to resume, while a weaker dollar globally further boosted the rupee. For the first time in two weeks, the currency traded below the 88 mark, opening 23 paise stronger at 87.82.

On Tuesday, the rupee had already closed 7 paise higher at 88.09, but today’s performance surpassed that. Analysts point out that global economic concerns also played a key role. Fears of a recession in the US have weakened the dollar, with Moody’s chief economist Mark Zandi stating that America is “on the brink of recession” based on jobs, productivity, and spending data.

Despite the rupee’s rally, investors remain cautious as they await the US Federal Reserve’s decision on interest rates. There is growing speculation that the Fed might opt for a rate cut, a move that could significantly impact global investment flows.

Market experts suggest resistance for the rupee around the 88.20 level. If it breaks past 87.90 with strength, the currency could move further to 87.50 or even 87.20 levels. Meanwhile, the US Dollar Index rose slightly by 0.11% to 96.73, while Brent crude futures slipped 0.20% to trade at $68.33 per barrel.