Indian rupee slips as dollar demand rises

The Indian rupee initially gained but ended slightly weaker on Wednesday as importers hedged their positions and the maturity of positions in the non-deliverable forwards market increased demand for the dollar.

The rupee closed at 86.8925 against the US dollar, slightly lower than the previous session’s close of 86.8275. The currency initially rose to 86.47 but later declined due to increased demand for dollars at the central bank’s reference rate.

Indian stock outflows and mild dollar sales from state-run banks limited rupee losses, according to a bank’s foreign exchange salesperson.

Despite challenges like portfolio outflows and trade war fears, the rupee’s bearish trend has eased after the central bank’s recent interventions. The currency has depreciated over 1 per cent in 2025, making it one of the weakest Asian currencies.

Attribution: Reuters

Subediting: M. S. Salama