The rupee weakened by 11 paise to close at 90.43 (provisional) against the US dollar on Wednesday, retreating after the previous session’s sharp rally that followed the India–US trade deal announcement.
Forex dealers attributed the decline to suspected dollar buying by corporates and importers, which weighed on the local currency despite the overall positive sentiment. Traders also remained cautious as the trade pact is yet to be formally signed or backed by an official framework or documentation.
At the interbank foreign exchange market, the rupee opened at 90.35, touched an early high of 90.26, and slipped to a low of 90.54 before settling lower against the greenback.