Indian rupee has weakened against the U.S. dollar on Wednesday amid high global crude oil prices and persistent fund outflows from foreign investors. The foreign institutional investors were the net sellers on Tuesday’s session, offloading securities worth Rs 4,672.64 crore. Besides, ongoing conflict in West Asia continued to weigh on investors’ sentiments. Further, ICRA in its report has said that there will be a downside risk to the India’s growth projection for FY2027 due to conflict is West Asia.  ICRA currently projects the real GDP growth at a healthy around 7.1% in FY2027 (vs. 7.6% in FY2026 Second Advance Estimates (SAE)) as per new 2022-23 series, amid favourable developments including the interim deal with the US with a lower tariff rate, improved prospects for domestic investment, aided by the robust hike in Central capital spending included in the Union Budget. On the global front, Japanese Yen has weakened against the U.S. dollar on Wednesday as heightened uncertainty over the West Asia conflict continued to support the dollar.

Finally, the rupee ended at 92.01 (Provisional), weakened by 16 paise from its previous close of 91.85 on Tuesday. The currency touched a high and low of 92.06 and 91.85 respectively.