Indian rupee depreciated against the US dollar on Wednesday as steep tariffs and H-1B visa related issues kept the domestic unit under pressure. Traders were worried as U.S. President Donald Trump accused India and China of being the primary funders of Russia's war in Ukraine through their continued purchase of Russian oil. Traders overlooked Organization for Economic Cooperation and Development’s (OECD) latest 'World Economic Outlook' report in which it has raised India's Gross Domestic Product (GDP) growth by 40 bps to 6.7 per cent for fiscal year 2025-26 (FY26) from its earlier projection of 6.3 per cent in June -- driven by strong domestic demand and robust GST reforms. On the global front, ringgit continued to close lower against the US dollar on Wednesday, with uncertainty over the US Federal Reserve’s (Fed) interest rate direction weighing on the local currency.
Finally, the rupee ended at 88.75 (Provisional), depreciated by 2 paise from its previous close of 88.73 on Tuesday. The currency touched a high and low of 88.80 and 88.67 respectively.
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