Rupee closes near one-month low; ends 5 paise lower at 86.42/$

Indian Rupee today: The domestic currency closed 5 paise lower at 86.42 against the dollar on Wednesday

Indian Rupee closed near a one-month level on Wednesday, even as trade deals signed by the US gained pace ahead of the deadline.  

 

The domestic currency closed 5 paise lower at 86.42 against the dollar on Wednesday, according to Bloomberg. The rupee has witnessed nearly 0.94 per cent depreciation in the current calendar year. 

 

In the previous session, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.41 against the greenback.  

Rupee traded flat in a narrow range, with marginal movement against the dollar, Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities, noted. The dollar index also remained steady around 97.40 as markets awaited further cues, he said. 

 

"Domestic capital markets gained, while Federal Reserve Chair Jerome Powell’s recent speech kept the dollar range-bound. Attention now shifts to next week’s U.S. interest rate decision, which will be a key directional trigger. Rupee is expected to trade within a range of 85.80–86.70," Trivedi said. 

 

On the tariffs front, the US President Donald Trump announced a trade deal, imposing a 15 per cent tariff on Japanese exports to the US. The Trump administration had also reached an agreement with the Philippines setting a 19 per cent tariff on their exports. Equity and currency markets in the Asia region rose after the deal announcement. 

 

Meanwhile, the dollar index, a measure of the greenback against a basket of six major currencies, was up 0.1 per cent higher at 97.39.

 

Exporters are advised to hold off on booking, with a stop-loss at 86.25, as foreign portfolio investors (FPIs) continue to sell, analysts said. 

 

FPIs sold equities for the second straight day, worth ₹3,548.92 crore, taking the total outflows in July to ₹5826 crore. Importers, meanwhile, may consider buying on dips for near-term cash requirements, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. 

 

"The currency is expected to trade within a narrow range today as markets await the Reserve Bank of India’s sell/buy swap data for May, which will offer insight into short positions, along with the Real Effective Exchange Rate (REER) data for June 2025," Bhansali said. 

 

In commodities, crude oil prices were stable amid US-Japan trade deal optimism and crude oil inventory decline of the US. Brent crude price was down 0.45 per cent at 68.28 per barrel, while WTI crude prices were lower by 0.47 per cent at 65.00, as of 3:35 PM IST.