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Indian rupee weakens against dollar on Wednesday

20 May 2026 Evaluate

Indian rupee weakened against the U.S. dollar on Wednesday weighed by inflation worries and foreign capital outflows. The foreign institutional investors were the net sellers on Tuesday’s session, offloading securities worth Rs 2,457.49 crore. Besides, investors took cautious approach as India Ratings & Research (Ind-Ra) has projected India's economic growth to slow down to 6.7% in the current fiscal year (FY27) on decelerated demand and supply. The agency believes higher fuel and food prices due to the West Asia conflict's uncertainty and the likely impact of evolving El Nino on agriculture from mid-2026 will pull down GDP growth in FY27. On the global front, the euro has weakened against the U.S. dollar on Wednesday, to trade below $1.16, after Eurozone’s annual inflation rate rose to 3.0% in the month of April 2026, the highest since September 2023.

Finally, the rupee ended at 96.84 (Provisional), weakened by 14 paise from its previous close of 96.70 on Tuesday. The currency touched a high and low of 96.95 and 96.65 respectively.

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