Rupee closes at 94.96 vs USD, logs best day in three weeks on NDF dollar sales, bailing shorts

The rupee closed at 94.9675 per dollar, up 0.4%, logging its best day in three weeks on the back of dollar-selling interest in the non-deliverable forward market and short covering. Most Asian currencies firmed alongside, with the dollar index steady at 100.95, as investors pared back expectations of US rate hikes to roughly 29 basis points by December from about 38 bps a week ago. Traders are now awaiting the minutes of the Fed's June meeting due Wednesday for cues on the future rate trajectory.