Finance
Despite recovering from early losses, the Indian Rupee ended Wednesday’s trading session weaker due to higher crude oil prices and cautious remarks made by US Treasury Secretary Scott Bessent.
Bloomberg reports that Wednesday’s closing value of the native currency against the dollar was 87.07, down 12 points. It reached the 86.92 mark during the previous session, but it eventually gave up part of its gains.
The US Treasury stated that the wealthiest Indian households profited from the purchase of Russian crude oil and issued a warning about potential secondary duties.
The firm has already lost 1.71 percent in 2025 and 1.9% in the current fiscal year. It increased by about 0.5% versus the dollar in August.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said the rupee opened weaker during the session due to the rising dollar index, new warnings of potential US tariffs on Indian imports of Russian oil, and geopolitical tensions involving China.
The Center’s plan to simplify the intricate GST system into two slabs of 5% and 18%, with a 40% bracket set aside for sin items, was the main driver of the currency’s increase over the previous two sessions. The mood was further supported by S&P Global’s upgrade of India’s sovereign credit rating.
Technically, the rupee continues to face strong resistance near 86.80 levels, while immediate support lies in the 87.60–87.80 zone, suggesting a range-bound bias until fresh triggers emerge, Jateen Trivedi, VP research analyst – commodity and currency at LKP Securities, said.
According to analysts, investor focus is progressively shifting to the US Fed Chair’s speech at Jackson Hole this weekend, and global mood is cautious ahead of the FOMC minutes release later today.
At 98.26, the dollar index, which compares the US dollar to a basket of six major currencies, was up 0.02 percent.
Crude oil prices increased somewhat in the commodities market as hopes of a possible truce between Russia and Ukraine grew. As of 3:35 PM IST, the price of Brent crude was up 0.91 percent at 66.39 per barrel, while the price of WTI crude was up 1.04% at 63.00 per barrel.
Source: BS
