The rupee closed stronger on Wednesday, tracking gains in most of its regional peers, while dollar-rupee forward premiums declined on the back of likely dollar-rupee buy/sell swaps conducted by the Reserve Bank of India. While the currency came under pressure earlier in the session and was supported by dollar-selling intervention by the Indian central bank, it ticked up in the latter half of the day on the back of dollar sales by foreign banks, traders said. At least three local private banks were also spotted offering dollars, aiding the rupee, a trader at a state-run bank said. The RBI also likely conducted dollar-rupee buy/sell swaps, which prompted a decline in forward premiums, traders said. The 1-year dollar-rupee implied yield dropped to 2.27%, its lowest level since July last year. The central bank has been conducting such swaps routinely to manage the impact of its spot market interventions on the cash in the banking system. Dollar-selling interventions remove INR liquidity from the system but the impact can be offset by selling dollars for a future date rather than in the spot through buy/sell swaps. Meanwhile, an uptick in most Asian currencies also aided the rupee. The dollar index was down 0.1% to 107.9 after whipsawing over the last two days as the trade tariff news flowed out of Washington. While tariffs found only a passing mention in U.S. President Donald Trump's inaugural speech on Monday, he said late on Tuesday that the administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1. The pound rose for a third day to hit a two-week high against the dollar on Wednesday, as a lack of clarity on U.S. President Donald Trump's tariff plans kept a lid on the greenback. Sterling was last up 0.1% at $1.2376, its highest since Jan. 8 . The pound initially fell more than 0.3% in early trading, as data showing that Britain borrowed more than expected in December weighed. The pound has gained 1.6% so far this week. The euro rose 0.14% against the pound to 84.50 pence, having hit its highest since August on Monday at 84.73 pence. Oil prices held near a one-week low on Wednesday as the market considers how U.S. President Donald Trump's proposed tariffs could affect global economic growth and demand for energy. Brent futures fell 19 cents, or 0.2%, to $79.10 a barrel by 11:04 a.m. EST (1604 GMT), while U.S. West Texas Intermediate (WTI) crude was 25 cents, or 0.3% lower, at $75.58.......