Indian rupee ended higher against the dollar on Wednesday. Traders got encouragement as economists in the Finance Ministry said with the stable downward movement in core inflation and moderation in food prices, the outlook for a reasonably low headline inflation rate is good. They said the outlook for the Indian economy appears ‘bright’ with GDP likely to grow by 7% next financial year beginning April 1 from an estimated 7.3% in the current financial year. Some support also came in with report that retail inflation for farm workers and rural labourers eased marginally to 7.52 per cent and 7.37 per cent in January as compared to the previous month, mainly due to lower prices of certain food items. On the global front, dollar fell broadly on Wednesday as it tracked a global decline in bond yields, while sterling struggled to retain gains following dovish comments from Bank of England (BoE) Governor Andrew Bailey on the central bank's rate outlook.
Finally, the rupee ended at 82.96 (Provisional), stronger by 1 paisa from its previous close of 82.97 on Tuesday. The currency touched a high and low of 82.97 and 82.86 respectively.
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