Indian rupee slips against US dollar on Wednesday

The Indian rupee fell sharply against the US dollar on Wednesday to 83.3450, down from 83.1775 the previous day, marking the biggest daily decline since April 12, Reuters reported.

The Indian rupee witnessed its steepest decline against the US dollar in nearly seven weeks on Wednesday as analysts attributed the fall to a combination of factors, including persistent dollar demand from importers and heightened election-related uncertainty.

S&P Global Ratings revised India’s outlook to positive, but foreign investors have withdrawn $2.6 billion from Indian equities in May. The rupee faces a support level at 83.60, with potential decline to 84.20.

Asian currencies weakened as US Treasury yields rose above 4.50 per cent, reflecting reduced expectations for Fed rate cuts. Investors await US core April PCE data on Friday for insights into future Fed policy.