The Indian rupee weakened against the dollar on Wednesday after Federal Reserve Chair Jerome Powell refrained from committing to any policy rate cut during his testimony in front of the US Congress.
The local currency depreciated 4 paise to close at Rs 83.53 against the greenback, according to Bloomberg. It had closed at Rs 83.50 on Tuesday.
Following the testimony, Brent crude oil prices eased 0.28% to $84.42 per barrel during the day. Powell reiterated the importance of positive economic indicators in supporting the Fed's confidence in its ability to rein in inflation.
"The (Brent crude oil) prices at $84.56 per barrel factored in a bigger-than-expected drawdown, although a build in distillate stockpiles somewhat offset optimism over tighter markets," Anil Bhansali, executive director of Finrex Treasury Advisors LLP., said.
Bhansali said the speculation of an imminent ceasefire between Israel and Hamas also caused traders to price out a portion of the risk premium in oil.
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