Indian rupee weakened against the U.S. dollar on Wednesday amid fears of additional US tariffs after the Trump administration proposed to impose additional 12.5% duties on 54 countries, including India, for failing to prohibit the import of goods produced with forced labour. Rupee also weighed by surge in global crude oil prices following reports of Iranian attacks on Kuwait and Bahrain. The brent crude oil prices spiked over two percent to trade near $98 per barrel mark. Further, foreign institutional investors (FIIs) continued to pullout capital from Indian markets. The FIIs were the net sellers on Tuesday’s session, offloading securities worth Rs 8,362.92 crore. On the global front, the Japanese yen has weakened against the U.S. dollar on Wednesday as Finance Minister Satsuki Katayama has reiterated that the government remains prepared to take appropriate action in the foreign exchange market whenever necessary to address excessive currency movements.
Finally, the rupee ended at 95.70 (Provisional), weakened by 34 paise from its previous close of 95.36 on Tuesday. The currency touched a high and low of 95.80 and 95.43 respectively.
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