The Indian rupee is likely to give up recent streak of strength and extend further decline against dollar, near a two-month low. Strength in the greenback overseas after Federal Reserve’s decision to keep the policy rate unchanged at the 4.25%–4.50% range at its June meeting could weigh down the local unit. Fed Chair Jerome Powell signaled, in a post-meeting press conference, that inflation remains somewhat above goal and could rise in the future, citing the impact of US President Donald Trump’s tariffs. Meanwhile, the greenback also draws support from safe haven demand amid heightened Middle East tensions. Yesterday, rupee depreciated 13 paise to close at 86.47 against the US dollar, dragged down by risk-off sentiments. Indian shares ended slightly lower on Wednesday as investors kept a close watch on escalating developments in the Israel-Iran conflict. A cautious undertone prevailed as comments from U.S. President Donald Trump raised fears of U.S. involvement in the Israel-Iran conflict. The benchmark 30-share BSE Sensex dropped 138.64 points, or 0.17 percent, to 81,444.66 while the broader NSE Nifty index closed down 41.35 points, or 0.17 percent, at 24,812.05. On the NSE, USDINR futures added around 0.1% to end at 86.36.