MUMBAI: The rupee closed 2 paise higher at 88.58 (provisional) against the US dollar on Wednesday, aided by buying momentum in domestic equity markets and lower crude oil prices overseas.

Forex traders said a strong American currency and outflow of foreign capital prevented a sharp gain in the rupee even as investors were concerned about the progress on the proposed India-US trade deal.

At the interbank foreign exchange market, the rupee opened at 88.57 and hit an intra-day high of 88.41 against the greenback. The domestic unit settled the day at 88.58 (provisional) against the dollar, logging a marginal gain of 2 paise from its previous closing level.

On Tuesday, the rupee settled 1 paisa lower at 88.60 against the US dollar.

"We expect the rupee to trade with a slight positive bias

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