Mumbai: The rupee appreciated 25paise to close at 87.84 against US dollar, tracking a positive trend in domestic equities and supported by optimism over US–India trade negotiations.

Forex traders said the Indian rupee strengthened for the fourth consecutive session on Wednesday and rose to the highest level in two and a half weeks on broad weakness of the American currency amid hopes of a US Fed rate cut.

They said investors are closely following the Federal Reserve’s policy decision as dollar softness globally is triggering rupee’s strength.

The market is expecting a 25-bps rate cut, and investors will watch out for the Fed chair’s speech for further guidance.