The Indian rupee posted its steepest one-day drop since May and hit a five-month low on Wednesday, hurt by worries over steep US tariffs on Indian exports alongside dollar demand from foreign banks. The rupee hit a low of 87.51 against the US dollar before closing at 87.42, down 0.7 per cent on the day.
Traders said that while the RBI likely stepped in to support the local currency, the intervention was not very aggressive. Traders also pointed to dollar sales from Indian banks, most likely on behalf of the RBI, which helped limit the rupee’s losses.
Meanwhile, cutting short the five-day losing streak, gold prices rebounded by ₹700 to ₹98,520 per 10 grams in the national capital on Wednesday due to fresh buying by stockists, according to the All India Sarafa Association.
On Tuesday, the precious metal of 99.9 per cent purity had closed at ₹97,820 per 10 grams.
Gift Nifty
Gift Nifty, the indicative benchmark to gauge the Nifty’s opening level, fell by 0.56 per cent at 24,714 at 9:50 PM on Wednesday after US President Trump announced a 25 per cent tariff on India along with a penalty for energy and defence purchases from Russia, starting August 1.
