**Market Brief: Rupee Underperforms Amid Month-End Demand** **Closing Update** The Indian rupee settled marginally weaker on Wednesday, closing at **91.78** against the US dollar, down from the previous session's close of **91.72**. Despite a generally supportive global environment, the domestic currency faced resistance due to specific technical factors and localized demand. **Primary Drivers** The slight depreciation was driven primarily by month-end dollar demand from importers, particularly in the oil and corporate sectors. Market reports also highlighted pressure from maturing non-deliverable forwards (NDF) positions, which kept the rupee from participating in the broader Asian currency rally. **Global & Regional Cues** While the rupee lagged, Asian peers largely appreciated, capitalizing on a softer greenback. The US Dollar Index (DXY) hovered near **96.24**, effectively touching four-year lows earlier in the session. This broad-based dollar weakness, triggered by dovish Federal Reserve expectations and recent comments on currency valuation from US leadership, helped cap significant losses for the rupee. **Domestic Sentiment** Downside risks were further mitigated by positive market sentiment surrounding the newly finalized India-EU Free Trade Agreement. This historic pact provided an underlying floor to the currency, preventing a sharper slide despite the heavy month-end outflows. **Outlook** Traders remain focused on the nearing Federal Reserve policy statement and ongoing geopolitical developments, which continue to influence capital flows in emerging markets. The rupee is expected to trade within a narrow range as immediate month-end pressures subside.