Cooling inflation in India and tariff-induced price pressures in the U.S. are cementing a downward bias on dollar-rupee forward premiums, according to analysts.

Food prices rose at a rate of 4.5% and transport prices rose by 1.7% in the 12 months to June, up from 0.7% in May.

The Indian rupee closed weaker on Wednesday, slipping by 13 paise to trade at 85.94 against the US dollar after the currency had appreciated slightly a day ago.

The Canadian dollar was largely flat against its U.S. counterpart on Monday as recent domestic jobs data offset trade uncertainty and investors awaited an inflation report seen as key to the Bank of Canada's upcoming interest rate decision.

The United States dollar is suffering its worst start to a year in more than five decades, likely triggering a price hike for some everyday items and a jump in expenses faced by travelers abroad, some analysts told ABC News.

While U.S. inflation figures didn’t surprise market watchers and investors, the fact that the downbeat expectations were realized still weighed on stocks.