The Indian rupee weakened against the US dollar on Wednesday, amid a retreat from Asian currencies ahead of the US tariff deadline next week.
The local currency ended 17 paise lower at 85.71. Intraday, the unit fell as much as 21 paise.
Trade tensions have been weighing on the markets ahead of July 9. The US could reach a trade deal with India, President Donald Trump said on Tuesday.
According to Reuters, most strategists in a poll said they did not expect the rupee to make any meaningful gains in the coming months.
The rupee has underperformed most Asian currencies this year, declining by about 0.1%. In contrast, the Korean won, Thai baht, Malaysian ringgit, and Singapore dollar have all seen gains exceeding 5%, according to the report.
The dollar index gained 0.15% to 96.73, supported by stronger-than-expected US economic data. The euro fell 0.2% and the British pound by 0.3%. The Japanese Yen shed 0.4% to trade at 144 against the greenback.
Oil prices edged higher for a second day as markets turned their focus to key supply and economic indicators over the week. International benchmark Brent crude traded above $67 a barrel, with West Texas Intermediate near $66.
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