News

The Indian rupee ended sharply higher on Wednesday, settling at 90.38 per U.S. dollar, marking a gain of around 0.7 per cent from the previous close of 91.0275.

This was the rupee’s strongest single-day rise since October 15, snapping a five-session losing streak. The recovery was largely attributed to suspected aggressive intervention by the Reserve Bank of India, which helped curb speculative pressure on the currency.

The rebound in the rupee came despite a broadly stronger US dollar in global markets. The dollar index rose nearly 0.4 per cent to 98.6, weighing on most Asian currencies.

Market participants noted that the central bank’s presence was visible through the session, helping stabilise the rupee even as external conditions remained challenging.

According to Dilip Parmar, Research Analyst at HDFC Securities, volatility is expected to remain high in the forex market amid shifting economic data and geopolitical developments. On the technical front, USD/INR faces immediate resistance near 90.60, while support is seen around 89.70.

In the domestic equity market, benchmarks closed marginally lower. The S&P BSE Sensex fell 120 points, or 0.14 per cent, to close at 84,559.65, while the NSE Nifty 50 slipped 41 points, or 0.16 per cent, to end at 25,818.55.

Foreign Institutional Investors remained net sellers, offloading equities worth Rs 2,381.92 crore on Tuesday, as per exchange data.

Global market cues were mixed. Britain’s pound weakened after softer-than-expected inflation data strengthened expectations that the Bank of England could begin cutting interest rates.

Across Asia, sentiment was modestly positive, with MSCI’s Asia-Pacific index excluding Japan rising 0.35 per cent, while Japan’s Nikkei also ended higher. US equity futures pointed to a slightly firmer opening later in the day, ahead of the release of key US inflation data.

In commodities, oil prices rebounded strongly after US President Donald Trump ordered a blockade on sanctioned oil tankers moving in and out of Venezuela, adding fresh geopolitical risk.

Brent crude futures rose 1.5 per cent to $59.79 per barrel, while US WTI crude gained a similar 1.5 per cent to $56.12 per barrel.

Meanwhile, Minister of State for Finance Pankaj Chaudhary told Parliament that the depreciation of the rupee during the current financial year has been influenced by a widening trade deficit and developments around India’s trade agreement with the US.

He noted that while a weaker currency can improve export competitiveness, it may also increase the cost of imports, with the overall impact depending on how global commodity prices pass through to domestic markets.

The Indian rupee ended sharply higher on Wednesday, settling at 90.38 per U.S. dollar, marking a gain of around 0.7 per cent from the previous close of 91.0275.

This was the rupee’s strongest single-day rise since October 15, snapping a five-session losing streak. The recovery was largely attributed to suspected aggressive intervention by the Reserve Bank of India, which helped curb speculative pressure on the currency.

The rebound in the rupee came despite a broadly stronger US dollar in global markets. The dollar index rose nearly 0.4 per cent to 98.6, weighing on most Asian currencies.

Market participants noted that the central bank’s presence was visible through the session, helping stabilise the rupee even as external conditions remained challenging.

According to Dilip Parmar, Research Analyst at HDFC Securities, volatility is expected to remain high in the forex market amid shifting economic data and geopolitical developments. On the technical front, USD/INR faces immediate resistance near 90.60, while support is seen around 89.70.

In the domestic equity market, benchmarks closed marginally lower. The S&P BSE Sensex fell 120 points, or 0.14 per cent, to close at 84,559.65, while the NSE Nifty 50 slipped 41 points, or 0.16 per cent, to end at 25,818.55.

Foreign Institutional Investors remained net sellers, offloading equities worth Rs 2,381.92 crore on Tuesday, as per exchange data.

Global market cues were mixed. Britain’s pound weakened after softer-than-expected inflation data strengthened expectations that the Bank of England could begin cutting interest rates.

Across Asia, sentiment was modestly positive, with MSCI’s Asia-Pacific index excluding Japan rising 0.35 per cent, while Japan’s Nikkei also ended higher. US equity futures pointed to a slightly firmer opening later in the day, ahead of the release of key US inflation data.

In commodities, oil prices rebounded strongly after US President Donald Trump ordered a blockade on sanctioned oil tankers moving in and out of Venezuela, adding fresh geopolitical risk.

Brent crude futures rose 1.5 per cent to $59.79 per barrel, while US WTI crude gained a similar 1.5 per cent to $56.12 per barrel.

Meanwhile, Minister of State for Finance Pankaj Chaudhary told Parliament that the depreciation of the rupee during the current financial year has been influenced by a widening trade deficit and developments around India’s trade agreement with the US.

He noted that while a weaker currency can improve export competitiveness, it may also increase the cost of imports, with the overall impact depending on how global commodity prices pass through to domestic markets.