Mumbai: The rupee ended Wednesday at 94.97 (provisional) against the US dollar, down 2 paise, as foreign capital inflows were offset by weak domestic equities and a stronger greenback.
Forex traders said the Reserve Bank of India (RBI) is monitoring the rupee amid Brent crude rising to $95 a barrel and the dollar index nearing 99.80, driven by renewed US-Iran tensions and risk aversion. Expectations of a September US Federal Reserve rate hike have lifted Treasury yields and triggered a broad dollar rally.
The 10-year US Treasury yield climbed above 4.8%, its highest level since January 2025, following softer-than-expected US economic data. The rupee opened at 94.97, touched 94.83 and slipped to 94.99 during the session.
Mirae Asset Sharekhan Research Analyst Anuj Choudhary said the rupee may retain a negative bias after the US attack on Iran pushed crude prices higher, while hawkish remarks from Fed Chair Kevin Warsh could add pressure. De-escalation could support the currency.
Traders will watch US ADP payrolls and factory orders, with USD-INR expected at 94.70-95.25.
The dollar index rose 0.14% to 99.82, while Brent gained 0.44% to $95.07 amid Strait of Hormuz supply concerns.
Sensex fell 373.93 points to 76,570.35 and Nifty 141.35 points to 23,914.45. FIIs bought ₹1,143.38 crore of equities on Tuesday.
