Rupee Closes Weaker Against Dollar
Rupee to see key support at 85.85 and 85.36.
The Indian rupee closed 11 paise weaker at 86.09 against the US dollar on Wednesday in comparison to its previous close of 85.98 on Tuesday. The currency's decline comes amid ongoing market uncertainty and geopolitical tensions.
This was after the domestic currency posted its biggest one-day gain in a month, rising 77 paise on Tuesday as falling crude prices eased macro pressures.
Rupee was selling near 86.70, close to the 70.5% Fibonacci level. "It's now hovering around the 20-day SMA at 85.86, with key support at 85.85 and 85.36. A break below may lead to 84.75, while holding above may keep the uptrend intact," said Ritesh Bhanshali, director, Mecklai Financial Service Ltd.
Additionally, the US dollar index extended losses below 98, as easing geopolitical risks in west Asia curbed haven demand.
Brent oil prices saw a slight increase to $67.06 after falling in the last two sessions. In the last few months, crude prices have tumbled to a four-year low amid US President Donald Trump's tariff wars. West Texas Intermediate crude plunged nearly 15% over two sessions to settle around $64 a barrel.
