Rupee Closes Weaker Against Dollar Amid Tariff Uncertainties
This comes as global market sentiment turned cautious following fresh inflation data from the United States.
The Indian rupee closed weaker on Wednesday, slipping by 13 paise to trade at 85.94 against the US dollar after the currency had appreciated slightly a day ago.
The Indian rupee opened weaker, slipping by 17 paise to trade at 85.98 against the US dollar. This comes as global market sentiment turned cautious following fresh inflation data from the United States.
Adding to the cautious tone, an Indian commerce ministry delegation is currently in Washington for a four-day round of negotiations on a proposed bilateral trade agreement. The outcome of these talks could influence future capital flows and currency direction.
"The sentiment remains acutely favourable for the dollar, driven by expectations of a hawkish Federal Reserve post-US inflation data and persistent uncertainties regarding India-US trade agreements," said Dilip Parmar – Senior Research Analyst, HDFC Securities.
The currency is likely to trade in a range of 85.45 to 86.25, said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
Brent surged on Wednesday to trade at $69.01 a barrel, with a decline of 0.44%, after sliding 12% three weeks ago. While West Texas Intermediate for August traded near $66.92, with a rise of 0.60%, Bloomberg reported.
Crude has been buffeted in recent weeks, surging and collapsing along with perceived geopolitical risk in west Asia, although volatility has eased in recent days.
