Bhansali said delays in an India–US trade agreement, higher American tariffs on Indian exports and strong dollar demand from importers, particularly those linked to precious metals, had compounded the pressure on the currency.
Indian share markets also remained volatile. The benchmark Sensex and Nifty indices extended losses on Wednesday after a sharp sell-off in the previous session, tracking weak global cues and rising geopolitical concerns.
In early trading, the Sensex dropped more than 1,050 points to an intraday low of 81,124, while the Nifty slid below the 25,000 mark for the first time in over four months. Although a brief rebound pushed both indices into positive territory, selling pressure returned later in the session, with the Sensex shedding around 500 points from its day’s high and the Nifty slipping back below 25,150.
Analysts said continued foreign selling, global uncertainty and concerns over trade and tariffs were likely to keep both the rupee and equity markets under pressure in the near term.
