MUMBAI: The Indian rupee closed unchanged on Wednesday as tariff-related uncertainties continued to dominate the Asian currency’s price action following mixed signals from US President Donald Trump regarding recent bilateral trade tensions.
The rupee ended little changed on Wednesday to 88.1000 against Tuesday’s close of 88.1025.
The local currency’s recent movement has largely been dictated by the ongoing trade tensions between India and the United States, traders said. The US has already imposed punitive tariffs on Indian goods of up to 50 percent - among the steepest levies on any American trading partner. Late on Tuesday, Trump said on Truth Social that Washington and New Delhi are continuing negotiations to address trade barriers, expressing confidence in a successful outcome.
However, he also pushed the European Union to impose tariffs of up to 100 percent on India over its purchases of Russian oil, a move that could prove to be a drag on the rupee, which has been among the worst-performing Asian currencies this year.
Apart from the punitive US tariffs on Indian goods, sustained dollar outflows by foreign investors have also weighed on the rupee.
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