India, Aug. 20 -- The rupee strengthened 17 paise to 95.56 against the US dollar in early trade on Thursday, supported by weakness in the American currency following the US Treasury's decision to double its buyback operations for longer-dated Treasury bonds.
Forex traders said the dollar index declined to its lowest level since late May as the Treasury's move pushed US long-term yields lower, narrowing the dollar's yield advantage.
The US currency also remained under pressure amid reduced expectations of further Federal Reserve tightening, although minutes from the July meeting showed that policymakers continued to express concerns over inflation.
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