The rupee slipped for the sixth consecutive session on Wednesday, settling 3 paise lower at 86.41 (provisional) against the US dollar, weighed down by a stronger greenback and sustained foreign fund outflows. As per news agency PTI, forex traders also flagged concerns around India’s trade ties with the US, warning that any delay or breakdown in ongoing talks could trigger further volatility in the rupee and exporters could face fresh pressure if tariffs rise.At the interbank foreign exchange, the domestic currency opened weak at 86.46 and moved between 86.34 and 86.46 through the day, before closing at 86.41. On Tuesday, it had ended at 86.38, down 7 paise, continuing its slide from July 16, when it had settled at 85.92 against the dollar.Anuj Choudhary, research analyst at Mirae Asset Sharekhan was quoted by PTI as saying, “The rupee weakened on a strong greenback and foreign institutional investors’ outflows. However, overnight decline in crude oil prices and positive domestic equities cushioned the downside.”The dollar index rose 0.04 per cent to 97.16, supported by higher-than-expected US inflation, which has dampened hopes of a rate cut by the Federal Reserve. Meanwhile, Brent crude slipped 0.52 per cent to USD 68.23 per barrel in futures trade, offering partial relief for India, which imports over 80 per cent of its oil needs.As per PTI, concerns are rising among Indian exporters as they await the outcome of India-US trade talks ahead of the August 1 deadline. Officials warned that if the discussions fail or get delayed, Indian goods could face higher tariffs in the US market, one of India’s largest export destinations, adding fresh pressure on the rupee and export sector.A US team is expected to visit India in August for the next round of negotiations, after the fifth round concluded last week in Washington.Despite the weakness in the rupee, domestic equity markets posted robust gains. The Sensex surged 539.83 points to close at 82,726.64, while the Nifty gained 159 points to end at 25,219.90. Heavy buying in banking and oil stocks, coupled with a positive global trend after a US-Japan trade deal, drove the rally.Private banking majors HDFC Bank and ICICI Bank touched 52-week highs intraday, while Reliance Industries rebounded 0.83 per cent after a five-day losing streak. However, FIIs continued to offload equities worth Rs 3,548.92 crore on Tuesday, according to exchange data.Experts said the progress in global trade negotiations, including those between India and the UK, has helped stabilise investor sentiment. However, risks from elevated valuations and currency weakness remain in focus.
