Post by : Badri Ariffin

The Indian rupee slipped slightly on Wednesday, giving up some of the previous day’s gains as a mild uptick in the dollar index offset the relief from lower crude prices and renewed optimism over a potential India-US trade pact.

The domestic currency opened six paise lower at ₹88.62 per dollar, according to reports. So far this month, the rupee has edged up 0.14%, though it remains one of Asia’s weaker performers this year with a 3.54% decline.

Tuesday’s modest rebound had lifted sentiment as the dollar softened and hopes grew for progress on trade talks between New Delhi and Washington. Traders viewed the movement as a tentative sign that the rupee could be regaining stability after several weeks of pressure.

Adding to the optimism, US President Donald Trump said Washington and New Delhi were close to finalising a new trade agreement, hinting that tariffs on Indian goods could be reduced soon. “We’re working on a deal with India, a very different one from before... We’re getting a fair deal,” Trump said, signalling a potential reset in bilateral trade ties.

The dollar index, meanwhile, inched up 0.06% to 99.50, buoyed by optimism that a US government shutdown might soon be resolved. The greenback’s gains remained muted after recent data showed job cuts among private employers, tempering confidence in the US economy.

On the commodities front, crude oil prices slipped ahead of key OPEC and IEA reports. Brent crude was down 0.25% at $65.00 per barrel, while WTI eased 0.28% to $60.87. The decline in oil prices—typically supportive for India’s import-heavy economy—offered a partial cushion to the rupee.

Market watchers say the USD/INR pair now finds support near 88.40, with potential to strengthen further if it breaks below that level. For now, investors remain cautious but hopeful that trade progress and steady capital flows could lend the rupee more resilience in the coming sessions.

#Business News #Economic