The Indian rupee edged lower in morning trade on Wednesday, falling 6 paise to ₹90.62 against the US dollar, as continued demand for the greenback and cautious global cues weighed on sentiment. The currency opened at ₹90.56 in the interbank foreign exchange market but slipped further during early deals.
Currency dealers attributed the decline mainly to sustained dollar buying by importers, particularly oil companies, which require large volumes of dollars to settle overseas payments. This demand for the US currency has kept the rupee under pressure in recent sessions.
The rupee had ended the previous session 10 paise higher at ₹90.56, recovering marginally after earlier weakness. However, the rebound was short-lived as fresh demand for dollars and cautious investor sentiment weighed on the domestic unit in early trade.
Global developments have also contributed to the rupee’s weakness. A firm US dollar in international markets, coupled with geopolitical concerns and uncertainty around trade-related matters, has affected emerging market currencies, including the rupee. Market participants remain watchful of developments related to India-US trade discussions, as well as global economic signals that could influence currency movements.
A weaker rupee has mixed consequences for the economy. On the positive side, it can make Indian exports more competitive in global markets, as goods priced in rupees become cheaper for foreign buyers. On the downside, it increases the cost of imports, especially crude oil and other essential commodities, which can add to inflationary pressures.
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