The Rupee closed weaker on Tuesday, hurt by worries over geopolitical tensions in the Middle East and U.S. President Donald Trump's remark that pharmaceutical tariffs were coming very soon. The rupee declined to 86.28 against the U.S. dollar near the end of the trading session, its weakest level since April 9, before closing at 86.24, down 0.2% on the day. The rupee extended its losses after the statement, traders said. Indian drugmakers earn a significant share of their revenue from the United States. India's pharma exports to the U.S. stood at $8.73 billion in fiscal year 2024, accounting for about one-third of the industry's overall exports, as per data from government-backed trade body Pharmaceuticals Export Promotion Council of India. India's pharma exports to the U.S. stood at $8.73 billion in fiscal year 2024, accounting for about one-third of the industry's overall exports, as per data from government-backed trade body Pharmaceuticals Export Promotion Council of India. Dollar demand from state-run banks also weighed on the rupee, a trader at a private bank said. "A close over 86.10 indicates that a bullish bias may start to build on USD/INR in the near-term," the trader said. While the focus will remain on geopolitical developments in the Middle East, traders are also awaiting the Federal Reserve's policy decision on Wednesday. With the central bank widely expected to keep policy rates unchanged, its projections for policy rates and commentary from Chair Jerome Powell will be in the spotlight. Sterling was lower against the dollar on Tuesday as market focus stayed on developments in the Middle East while traders await a closely-watched UK inflation print due on Wednesday and a Bank of England (BoE) interest rate decision due on Thursday. The pound is up 8.5% versus the dollar so far this year, but 3% lower versus the euro. Pfister said weaker-than-expected economic data has weighed on euro/sterling since the beginning of June. Since then sterling is down about 1%, despite the UK being the only country to strike a trade deal with the U.S. Money markets expect the BoE to hold rates steady at 4.25% on Thursday and see about two more 25 bps rate cuts by December. Oil prices climbed over 3% on Tuesday as the Iran- Israel conflict raged with no end in sight, though major oil and gas infrastructure and flows have so far been spared from substantial impact. Brent crude futures gained $2.76, or 3.77%, to $75.99 a barrel by 12:56 p.m. CDT (1756 GMT). U.S. West Texas Intermediate crude was up $2.50, or 3.48%, at $74.26.......