Rupee ends flat amid low volatility, trade talk hopes; closes at 88.11/$

Indian Rupee today: The domestic currency closed 1 paise lower at 88.11 against the greenback on Wednesday, according to Bloomberg

The Indian Rupee ended flat on Wednesday, after US President Donald Trump signaled possible resumption of trade talks with India.

 

The domestic currency closed 1 paise lower at 88.11 against the greenback on Wednesday, according to Bloomberg. So far this year, the rupee has depreciated 2.91 per cent, making it the worst performer among Asian peers.

 

The one-month implied currency volatility has declined to levels last seen in March, according to a Reuters report. 

 

In a post on Truth Social, Trump said, "I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries," adding he intends to speak to Indian Prime Minister Narendra Modi "in the coming weeks".

 

 

 Modi, in a post on X, commented that he is "confident" that the trade negotiations "will pave the way for unlocking the limitless potential of the India-US partnership."

 

The optimism was, however, mixed as Trump urged European Union leaders to join him in increasing tariffs on India and China to punish the countries for buying Russian energy. 

 

The currency was in a range as Trump said that the tariffs talks between India and US are on while on the other hand he asked Europe to impose 100 per cent tariffs on buyers of Russian Oil which he would then reciprocate, analysts said. 

 

The RBI being a seller of dollar at 88.20/30 levels the pair was range bound with lower levels getting well bid and higher levels getting sold off, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. "Rupee expected to be in a similar range of 87.90 to 88.40 tomorrow."

 

Foreign Portfolio Investors turned net buyers in Indian equities worth ₹2,050.46 crore on Tuesday, the first time this month. So far this year, FPIs sold equities worth ₹1.4 trillion, according to NSDL. Asian currencies were also marginally lower, likely keeping buying interest in dollars at dips in the rupee, Bhansali said. 

 

Investors await US data on crude oil inventories, wholesale inventories, and the Producer Price Index (PPI). 

 

The dollar rose slightly after a US court blocked Trump from removing Federal Reserve Governor Lisa Cook. The dollar index, a measure of the greenback against a basket of six major currencies, was down 0.08 per cent at 97.71. 

 

In commodities, crude oil prices rose after Israel conducted a strike against senior Hamas leaders in Doha, Qatar. Brent crude price was up 0.66 per cent at 66.83 per barrel, while WTI crude prices were higher by 0.72 per cent at 63.08 per barrel, as of 3:35 PM IST.