Indian Rupee, however, touched base losses in the morning, but it could rebound a little bit, as the U.S. dollar ended slightly lower, pinned by the easy market sentiment despite geopolitical and economic headwinds. The rupee finished at 85.68 to a dollar compared to the 2-paise rise in the previous close. Even though the rupee has depreciated by 0.27 per cent in the ongoing financial year and by 0.08 per cent as of Wednesday during the 2025 calendar year, the depreciation gave some respite to traders on Wednesday.
The rebound in the rupee happened after initial pressure after the former U.S president Donald Trump once again made it clear that he intended to levy another 10 per cent tariff on the BRICS nations, which includes India. Trump also made it official that country-specific levies that are slated to be implemented in August would not be subject to any extension. Among the new measures, imports of copper were hit with a sharp 50 per cent tariff, causing copper futures to gain intraday as much as they had ever before in decades. At the same time, the pharmaceutical companies might also face punitive taxes, ranging up to 200%.
Dollar index, the indicator of the power of the greenback over six big currencies of the world, rose by 0.5 per cent to 97.56 after the announcement of Trump. In their turn, most Asian currencies weakened in response as an indicator of cautious investor sentiment. Equity markets across the region diverged as investors chewed on the possible side effects of the new trade policy in the United States.
Future data releases are now under close observation of market participants, which include the U.S Federal Open Market Committee (FOMC) minutes, API crude oil stock changes, and consumer credit reports. China’s inflation data is also on the radar of investors, who hope to get a better picture of how the world markets will grow.
In commodities, oil prices hit a two-week high on fears of new restrictive supplies following the news of new Houthi attacks on the shipping routes in the Red Sea. Brent crude was traded at 70.41 dollars per barrel at 3:45 PM IST, and it grew by 0.37 per cent, whereas WTI crude increased by 0.42 per cent to 68.62 dollars per barrel.
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