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Rupee depreciates on Wednesday amid geopolitical tensions

07 May 2025 Evaluate

Indian rupee depreciated against the US dollar on Wednesday. The decline was attributed to heightened tensions between India and Pakistan, following India’s military action in Pakistan and Pakistan-Occupied Kashmir. Traders overlooked the report that India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to $120 billion by 2030. On the global front, Japanese yen weakened against other major currencies in the Asian session amid increased risk-on by the investors, as traders reacted to China's central bank saying it would cut its key policy rate by 10 basis points and lower the reserve requirement ratio by 50 basis points to boost growth. 

Finally, the rupee ended at 84.77 (Provisional), depreciated by 41 paise from its previous close of 84.36 on Tuesday. The currency touched a high and low of 84.93 and 84.47 respectively.

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