Indian rupee dips, traders gauge fresh terrain after trade deal rally

MUMBAI: The Indian rupee ended modestly weaker on Wednesday, as companies hedged their dollar exposures and as traders assessed the stronger outlook for the Asian currency a day after a trade deal with the US led to its sharpest rally in over 7 years.

The rupee settled at 90.4350 per dollar, down 0.2 percent from its close at 90.2650 in the previous session. Dollar demand related to maturing positions in the non-deliverable forwards market, corporate hedging and modest portfolio inflows were among the factors that influenced the rupee on Wednesday, traders said.

Before building positions in either direction, market participants are trying to calibrate for the fresh ranges the currency may settle into after a sharp rally spurred by the announcement of a trade deal with the US, a trader at a foreign bank said.