Indian rupee ended higher against dollar on Tuesday as a rally in domestic equity markets boosted investor sentiment. Traders took support with private report stating that Indian retail inflation likely eased to 5.50% last month (September), within the Reserve Bank of India's (RBI) tolerance band, on moderating food price rises and government subsidies that offset a surge in the cost of crude oil. Besides, another private report stated that the International Monetary Fund (IMF) has raised its 2023-24 GDP growth forecast for India for the second time in three months, taking it closer to the 6.5 percent predicted by Indian authorities. On the global front, Sterling rose on Tuesday, moving further off recent lows and rallying in line with a rebound across markets, as investment flows to safe-haven currencies and assets a day earlier caused by the war in the Middle East reversed somewhat.
Finally, the rupee ended at 83.25 (Provisional), higher by 3 paise from its previous close of 83.28 on Monday. The currency touched a high and low of 83.26 and 83.22 respectively.
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