The Indian rupee has also performed well on Wednesday, opposing the general weakness of Asian currencies, although it still stands at 88 against the US dollar. Market reports show the domestic unit shed nine paise to close at 88.07 per dollar. Even with this benefit, the rupee remains the poorest performing Asian currency this year, as it has weakened 2.87 per cent thus far this year.
Market observers credited the resiliency of the rupee to domestic economic strength in the face of outside forces. Regarding the trade front, the former US President Donald Trump made comments concerning the US-India trade relationship, stating that the US-India is doing well in trade, but he does not envisage reducing Indian tariffs on US goods. During a White House event, Trump also pointed out that India imposes very high importation levies and that the trade association is an unequal one.
Foreign portfolio investors (FPIs) have been playing on the safe side of these uncertainties, and they have continued to pull out investments both in the equities and debt markets. According to the figures published by NSDL, the number of FPIs that have sold equities amounting to 1.4 trillion already this year reflects the panic over the growing trade deficit in India, particularly following the enactment of a 50 per cent tariff on selected Indian products – one of the highest in the world.
Domestic economic indicators have been positive in spite of external challenges. GDP in India increased 7.8 per cent in the first quarter of FY26 (April-June), which is the highest amount in five quarters.
In the meantime, the dollar index that follows the greenback against a basket of six large currencies dropped 0.17 per cent at 98.23. In commodities, the price of Brent crude fell 1.59 per cent to 68.04 per barrel, and WTI crude fell 1.80 per cent to 64.41 per barrel ahead of the OPEC+ meeting over the weekend.
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