The Indian rupee ended modestly weaker on Wednesday, tracking declines in Asian peers as expectations of further US Federal Reserve rate hikes lifted the dollar. The rupee fell 0.1% to 95.74 per dollar from a close of 95.59 in the previous session. Asian currencies fell 0.1% to 0.3% as investors watched oil prices and Fed rate expectations. The dollar index has risen more than 1% since the Fed raised rates last week as bets on further tightening grew. Interest rate futures markets have baked in about 75 basis points worth of hikes over the next 12 months. On Wednesday, dollar sales by state-run banks -- most likely on behalf of the Reserve Bank of India -- helped limit the currency's losses. The Reserve Bank of India likely intervened in the foreign exchange market on Wednesday, five traders said, continuing its interventions to support the currency as it navigates volatile oil prices and weak portfolio flows. State-run banks were also spotted conducting dollar/rupee sell-buy swaps, the traders said, likely on the RBI's behalf and intended to drain excess rupee liquidity. The US dollar rose to its highest level in nearly two months on Wednesday as investors priced in a rate hike cycle from the Federal Reserve, while oil prices jumped as comments from Iran cast doubt on progress in peace talks. In the wake of the central bank's rate hike last week, comments from several Federal Reserve officials have also flagged the possibility of more rate increases if inflation does not cool. The euro was down 0.52% at $1.1386 and on pace for its third straight daily decline. Earlier S&P Global Flash Euro Zone Composite PMI Output Index data showed the region's economy is showing unexpected signs of health even as conflicts in the Middle East and Ukraine drive up energy costs for firms and households. The euro was down 0.52% at $1.1386 and on pace for its third straight daily decline. Earlier S&P Global Flash Euro Zone Composite PMI Output Index data showed the region's economy is showing unexpected signs of health even as conflicts in the Middle East and Ukraine drive up energy costs for firms and households. Investors are also waiting for a high-stakes meeting between Trump and Chinese President Xi Jinping as the two leaders seek stability in a relationship as the superpowers' tensions over trade, technology and Tehran will play out. The dollar strengthened 0.20% to 6.712 versus the offshore Chinese yuan. The Japanese yen weakened 0.6% against the greenback to 158.32 per dollar as traders remain wary of the threat of intervention after the Bank of Japan's rate hike to a 31-year high last week fell short of reassuring investors that more increases may be on the way. Japanese markets are closed for a holiday and this period of lower liquidity makes it a higher probability for authorities to intervene, according to analysts. Oil prices, meanwhile, held below $100 ?per barrel, kept in check by improving Gulf crude supplies and growing hopes for a diplomatic resolution to the US-Israeli war with Iran. Gold prices fell more than 1% on Wednesday as hawkish Federal Reserve signals bolstered rate hike expectations and powered the US dollar to two-month highs, weighing on non-yielding bullion. Spot gold fell 1.1% to $4,304.89 per ounce, as of 9:05 a.m. ET (1305 GMT). US gold futures for December delivery were down 0.8% at $4,341.90. Among other metals, spot silver fell 3% to $65.05 per ounce, platinum lost 3.7% to $1,767.73, and palladium declined 3% to $1,268.84. www.eforexindia.com......