The Indian rupee opened at 84.39 against the US dollar on Wednesday, weakening by 5 paise from its previous close of 84.34. This follows a series of declines, with the rupee slipping by six paise on Tuesday. While the rupee had shown a slight recovery on Monday, gaining 17 paise, the currency continues to face downward pressure due to persistent demand for the US dollar and global uncertainties.

Analysts had predicted a weaker outlook for the rupee, especially after a brief period of inflows that helped the rupee appreciate on Monday. On Wednesday, the rupee was expected to trade within a range of 84.25 to 84.45, with exporters possibly holding back from selling and importers looking to take advantage of any dips.

The rupee’s recent decline followed a period of inflows from the MSCI rebalance but was further weighed down by external factors, including the US’s import levies and geopolitical tensions such as the Russia-Ukraine conflict. Global funds also offloaded significant amounts of Indian equities, contributing to the continued pressure on the rupee.

In response to these challenges, the Reserve Bank of India (RBI) has been actively intervening in the forex market, selling dollars and using other measures to stabilize the domestic currency.