The rupee gained 2 paise to close at 87.19 (provisional) against the US dollar on Wednesday, amid volatile global sentiment driven by tariff uncertainties and a slight recovery in the American currency index.
Forex analysts noted that an upward movement in crude oil prices also impacted the local unit, restricting its gains as selling pressure in domestic equities and foreign capital outflows persisted. Market participants exercised caution ahead of key macroeconomic data releases in India and the US later in the day.
At the interbank foreign exchange market, the rupee opened at 87.24, touching an intraday low of 87.32 against the greenback. It also hit a high of 87.17 before settling at 87.19 (provisional), marking a 2-paise gain from the previous session’s close.
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On Tuesday, the rupee had strengthened by 10 paise to end at 87.21, recovering some ground after a 36-paise decline on Monday.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.18 per cent to 103.45. Brent crude, the global oil benchmark, traded 0.55 per cent higher at $69.94 per barrel in futures trade.
Equity market performance
The domestic equity markets ended the session on a flat note, with the BSE Sensex declining 72.56 points, or 0.10 per cent, to settle at 74,029.76. The broader NSE Nifty slipped 27.40 points, or 0.12 per cent, closing at 22,470.50.
Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 2,823.76 crore on a net basis on Tuesday, according to exchange data.
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Tariff uncertainties weigh on sentiment
Global markets remained jittery as trade uncertainties escalated after former US President Donald Trump stated that the upcoming tariffs on steel and aluminium from Canada would be doubled to 50 per cent. However, he later hinted at a possible reconsideration of the hike, adding to the volatility in currency and equity markets.
Despite these headwinds, Indian equities, in a holiday-shortened week, managed to pare their losses toward the close, led by select gains in financial stocks, particularly Bank Nifty. The resilience in some market pockets helped limit the overall downside pressure.
