The Indian rupee rose for a third consecutive session on Wednesday to hit a more than one-month peak as the central bank followed up tough regulatory measures with hawkish commentary. However, the gains were capped below the 95 per dollar mark as dollar demand linked to importer hedging and portfolio outflows persisted. The rupee climbed to a peak of 94.77 in early trading before settling 0.1% higher at 95.15. Reserve Bank of India Governor Sanjay Malhotra has defended India's recent forex curbs as an effort to discourage speculative bets and said the central bank is ready to take additional steps to ensure orderly rupee movement. He added that while monetary policy is not typically deployed to address financial stability concerns, the two cannot be entirely separated. It seems traders interpreted the remarks as a signal of limited tolerance to further rupee weakness. Indian importers continue to lock in future dollar purchase rates to protect against the rupee weakening, despite the banks charging more following the central bank's steps. The US dollar rose against major currency peers on Wednesday, after data showing US inflation data showed consumer prices increased in September on higher gasoline costs, raising the prospects of an interest-rate hike later this month. The Consumer Price Index rose 0.6% last month after climbing 0.4% in August, the Labor Department's Bureau of Labor Statistics said on Wednesday. In the 12 months through September, the CPI advanced 3.7% after rising 3.4% in August. The dollar was last up 0.28% against the yen at 158.74, while the index, which tracks the currency against six peers , was last up 0.44% at 102.62. The British pound touched a fresh 16-month high against the euro on Wednesday, and steadied against the dollar as traders awaited US inflation data for clues about the interest rate path. Sterling rose to its strongest level since June 2025 versus the euro, which was last trading at 84.34 pence. The euro has fallen around 2% against the pound in the last three weeks alone, as elevated oil prices and concerns about France's public finances weigh on the single currency. Against the dollar, sterling was nearly flat at $1.3262 by 1109 GMT, having touched a one-week high of $1.3285 earlier in the session. Oil prices steadied on Wednesday after rising on an attack on the headquarters of Saudi Arabia's state-owned oil company and Iranian comments about new tactics deployed to target ships and keep oil prices high to influence US midterm elections. Brent crude futures were up 13 cents at $105.56 a barrel by 1325 GMT. US West Texas Intermediate crude gained $1.25, or 1.33%, to $95.39 for a more than two-week high. Gulf oil flows excluding Iran surged in September to more than 81% of prewar levels, data showed, led by a recovery in Saudi exports. Iranian exports, meanwhile, fell to zero owing to a US blockade. Gold fell over 1% on Wednesday, extending losses for a third straight session, as a stronger-than-expected inflation reading increased US Federal Reserve rate hike bets for this month. Spot gold dropped 1.7% to $4,086.06 per ounce by 9:03 a.m. EDT (1303 GMT), its lowest since October 7. US gold futures for December delivery fell 1.6% to $4,108.60 per ounce. Among other metals, spot silver fell 4.1% to $56.99 per ounce, platinum dipped 2% to $1,629.79 per ounce and palladium fell 0.7% to $1,118.46 per ounce. www.eforexindia.com......