On Wednesday, the Indian Rupee closed lower, even though it regained some ground after opening at a loss, as the dual impact of a cautious US Treasury Secretary Scott Bessent and higher levels of crude oil pressure was maintained. Local currency ended the day at 87.07/US, down 12 paise as against 86.95 in the last session. The Indian rupee had earlier surged to 86.92 and held on to the gains shortly, but lost them before the close of trade.
This pressure on the rupee followed the US Treasury Secretary showing membership rather than rejection of secondary tariffs, and raising concerns that the wealthiest families in India have been the largest beneficiaries of the purchases of Russian grade crude oil at the discounted price. These remarks caused investor alertness and tensed the market, making the rupee even more volatile.
The rupee has fallen by 1.71 percent so far in the year 2025 and by 1.9 percent in the ongoing financial year. Nevertheless, the domestic currency did not do so badly as it registered a 0.5 percent rise against the dollar in the month of August.
In the meantime, the US dollar index, which measures the greenback against a base of six major world currencies, nudged up 0.02 percent to 98.26, further putting strain on currencies in emerging markets.
The commodities market saw a solidification of crude oil prices, and this gave added pressure to the Indian currency. Brent futures appreciated 0.91 percent to USD 66.39 a barrel, and WTI futures increased 1.04 percent to USD 63.00 a barrel by 3.35 PM IST. The hope of a possible ceasefire between the current conflict between Russia and Ukraine acted as a positive in crude demand, though the increased prices push up import rates in countries like India, one of the world’s leading oil importers.
Analysts opine that the rupee can still be under near-term pressure amid global uncertainty, crude oil price dynamics, and US policy signals, even though the domestic fundamentals look stable.
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