The Indian rupee closed nearly flat on Wednesday, trailing behind its Asian peers as the impact of a weaker U.S. dollar was blunted by strong demand for the greenback from foreign banks, likely on behalf of custodial clients.

US stock futures traded flat as investors faced the tough reality that despite trade tensions easing President Trump's tariffs still stand to deal a blow to the economy.

Things aren’t looking so good for the U.S. dollar. Though it’s spent decades as the world’s reigning reserve currency, it’s been weakening lately thanks to tariffs and uncertainty in the U.S. economy.

"The combination of diminished appetite to buy U.S. assets and the rigidity of a U.S. fiscal process that locks in very high deficits is what is making the market very nervous," George Saravelos, global head of FX research at Deutsche Bank, said in a note. The Trump administration has said it backs a strong-dollar policy.

After recovering from an initial jolt, U.S. stocks drifted through quiet trading following the latest reminder that the U.S government may be hurtling toward an unsustainable mountain of debt.

The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors slashed bets on a Bank of Canada interest rate cut next month after domestic data showed underlying inflation heating up.

While retailers diverge over the impact of Trump's tariffs, some discount stores are seeing a boost. Dollar General shares jumped 3.9% Tuesday, while Dollar Tree shares gained 3.7%. That comes after W

The Hong Kong dollar edged closer to the weak end of its trading range as sliding local interest rates encouraged traders to increase their borrowing of the currency to fund carry trades.

Disappointing domestic demand is an ongoing concern, she said, as store sales slump and pizza sales struggle. “Consumers are really weary about where their dollar is going right now and, unfortunately dinning out will be talking a bigger hit because of that, and that’s where a lot of cheese consumption happens.”

The dollar falls to a two-week low amid mounting concerns over spiralling U.S. government debt as President Trump tries to push through his tax cutting bill in the wake of a credit rating downgrade from Moody’s.