The Indian rupee extends its rally on Wednesday after the central bank's steps to support the currency were reinforced by the governor's indication that further measures remain an option. The currency has already surged 1.5% over the past two sessions after the Reserve Bank of India rolled out a series of measures to address the dollar demand-supply imbalance that had kept the rupee under sustained pressure. In a media interview on Tuesday, RBI Governor Sanjay Malhotra defended the recent forex curbs as an effort to discourage speculative bets. He said the measures were meant to preserve access to currency hedges for businesses with genuine exposure, while signalling that the central bank is ready to take additional steps to ensure orderly rupee movement. he dollar languished on Wednesday as traders awaited fresh signals on the timing for interest rate hikes to contend with persistent inflation. The greenback weakened from an 18-month high in the previous session as oil prices eased and investors reassessed the AI-fueled rally that has supported demand for US assets. The euro clung to gains as budget concerns in France kept regional bond yields elevated and markets on edge. Attention now focuses on the release of US consumer price index data as well as speeches from Federal Reserve policymakers that could clarify the outlook for interest rates. The dollar index , which measures the greenback against a basket of currencies, edged 0.02% lower to 102.16, following a 0.35% slide on Tuesday. The euro rose 0.04% at $1.1203. The yen was little changed at 158.32 per dollar, and sterling rose 0.03% to $1.3256. Traders see a 77% chance that the Fed will leave rates unchanged at its October 27-28 meeting, up from 51% a month ago, while ?pricing in about 75 basis points of tightening by late 2027, CME Group's FedWatch Tool showed. Sterling edged lower against the euro on Tuesday after hitting its highest in about 16 months a day earlier, supported by easing fiscal concerns and growing expectations for Bank of England rate hikes. The pound climbed versus a weakening weakening dollar as oil prices dropped and markets expect geopolitical tensions to remain subdued before US midterm elections. Sterling rose 0.19% to $1.334. It was down 0.05% at 84.48 pence , after hitting on Monday 84.45 pence, the highest level since June 2025. Oil prices climbed on Wednesday as traders weighed supply risk from fighting between Yemen's Iran-allied Houthis and Saudi Arabia against the prospect of increased diesel from Russia. Brent crude futures rose 89 cents, or 0.8%, to $106.58 a barrel by 0030 GMT, while US West Texas Intermediate crude futures gained 80 cents, or 0.9%, to $94.94. Brent fell 0.9% on Tuesday, while WTI rose 0.4%. Gold prices were little changed on Wednesday as investors braced for US consumer price index data due later in the day to gauge the Federal Reserve's latest monetary policy stance. Spot gold held steady at $4,159.45 per ounce by 0251 GMT. U.S. gold futures for December delivery edged 0.1% higher to $4,182.60. Among other metals, spot silver eased 0.6% to $59.11 per ounce, platinum steadied at $1,664.19 and palladium gained 0.4% to $1,130.81. www.eforexindia.com......