The rupee closed at 87.19 (provisional) against the US dollar on Wednesday, gaining 2 paise amidst volatile global sentiment on tariff uncertainties and some recovery in the American currency index. Forex analysts noted that the local unit was impacted by an upward move in crude oil prices, which also contributed to its limited gain as selling pressure in domestic equity and outflow of foreign capital persisted. Market participants remained cautious as they awaited cues from macroeconomic data to be released in India and the US later in the day.
Starting at 87.24, the rupee touched its intraday low at 87.32 against the greenback, with a high of 87.17 before closing at 87.19 (provisional), marking a 2-paise increase from the previous session’s closing level. The rupee had ended 10 paise higher at 87.21 against the dollar on Tuesday, following a 36 paise loss previously.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading up by 0.18% at 103.45. Meanwhile, Brent crude, the global oil benchmark, traded 0.55% higher at US $69.94 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex closed 72.56 points, or 0.10% lower at 74,029.76, while the broader Nifty settled 27.40 points, or 0.12% down at 22,470.50 points. Foreign institutional investors (FIIs) offloaded equities worth ₹2,823.76 crore on a net basis on Tuesday.
Uncertainties over tariff moves intensified following President Donald Trump’s announcement that the US would double the forthcoming levy on steel and aluminium to 50% if they come from Canada. However, he later hinted at reconsidering the additional hike.
