Rupee defies Asian currency weakness; ends 9 paise higher at 88.07/$

Indian Rupee today: The domestic currency closed nine paise higher at 88.07 against the greenback on Wednesday

The Indian Rupee ended higher on Wednesday, outperforming its Asian peers, but stayed above the 88 mark against the dollar.

 

The domestic currency closed nine paise higher at 88.07 against the greenback on Wednesday, according to Bloomberg. So far this year, the rupee has depreciated 2.87 per cent, making it the worst performer among Asian peers.

 

On the trade front, Trump says that he is not looking at lowering tariffs on India. "We get along with India very well," Trump said at a White House event, but criticised the imbalanced trade relationship because of high Indian levies. 

 

Foreign portfolio investors (FPIs) continue to pare holdings in both equities and debt, amid concerns that India’s trade deficit could widen following the Trump administration's 50 per cent tariff on Indian goods, among the steepest globally. So far this year, FPIs sold equities worth ₹1.4 trillion, according to NSDL data.   

 

 

Sumitomo Mitsui Banking Corporation's (SMBC) $1.6 billion share purchase approval could bring inflows, analysts had said earlier, keeping the rupee in the 87.80–88.30 range. Reports also showed that the options market is signalling less near-term downside pressure on the rupee after it breached the 88 level last Friday.

 

India’s gross domestic product (GDP) grew 7.8 per cent in the first quarter (April-June) of the financial year 2025-26 (FY26), hitting a five-quarter high.  The manufacturing purchasing managers index (PMI) touched a nearly 18-year high of 59.3 in August.

 

The focus is on two key releases, the August jobs report and the inflation print, both due before the September 16–17 US Federal Reserve's policy meeting. The dollar index, a measure of the greenback against a basket of six major currencies, was down 0.17 per cent at 98.23. 

 

In commodities, crude oil prices gave up the previous session's gains ahead of the Opec+ meeting over the weekend. Brent crude price was down 1.59 per cent at 68.04 per barrel, while WTI crude prices were lower by 1.80 per cent at 64.41 per barrel, as of 3:40 PM IST.