The rupee depreciated 13 paise to close at 86.47 against the US dollar on Wednesday, hurt by persistent risk-off sentiment, elevated crude oil prices, and geopolitical tensions in the Middle East.The local currency opened at 86.42 at the interbank foreign exchange and saw high intraday volatility, touching a high of 86.25 and a low of 86.57 during the session before settling at 86.47, a 13-paise drop from Tuesday’s close of 86.34, PTI reported.Forex traders attributed the rupee’s weakness to selling pressure from foreign investors, broad dollar strength, and weakness in domestic equities.“The rupee may continue to trade with a negative bias amid global risk aversion and worries over rising crude oil prices. Any escalation in Middle East tensions could further weigh on the rupee,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.Choudhary added that traders are likely to take cues from weekly US unemployment data and the outcome of the Federal Open Market Committee (FOMC) meeting, where the US Fed is expected to hold interest rates steady.The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.17% at 98.65.In commodities, Brent crude futures slipped 0.86% to USD 75.79 per barrel, offering limited relief after recent gains.On the domestic front, equity markets remained under pressure, with the BSE Sensex falling 138.64 points to 81,444.66 and the Nifty50 losing 41.35 points to close at 24,812.05.Despite the weak rupee, foreign institutional investors (FIIs) remained net buyers, purchasing Rs 1,482.77 crore worth of equities on Tuesday, according to exchange data.
