Indian rupee strengthened against the dollar for third consecutive day driven by overall weakness in crude oil prices. Sentiments remained upbeat even after World Bank slashed its 2023 growth forecasts to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies, Russia’s war in Ukraine continues, and the world’s major economic engines sputter. It expected global GDP growth of 1.7% in 2023, the slowest pace outside the 2009 and 2020 recessions since 1993. In its previous Global Economic Prospects report in June 2022, the bank had forecast 2023 global growth at 3.0%. On the global front, U.S. dollar held its ground on Wednesday as traders waited for this week's U.S. consumer price data to see whether it will confirm that inflation is in retreat.
Finally, the rupee ended at 81.56 (Provisional), stronger by 18 paise from its previous close of 81.74 on Tuesday. The currency touched a high and low of 81.82 and 81.51 respectively.
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