Indian rupee consolidated in a narrow range and settled almost unchanged against the US dollar on Tuesday, amid a weak trend in domestic equities. The strength of the American currency in the overseas market, elevated crude oil prices and foreign fund outflows weighed on the local unit. However, traders took some support as India Ratings and Research revised upward the country's GDP growth estimate for FY25 to 7.1 per cent from 6.5 per cent earlier. The projection is marginally higher than the Reserve Bank's estimate of 7 per cent. The rating agency said strong support from the sustained government capex, deleveraged balance sheets of corporate and banking sector, and the incipient private corporate capex cycle make it revise its estimate. On the global front, the U.S. dollar edged higher on Tuesday, attempting a comeback after the sharp losses at the end of last week, while the Japanese yen retreated despite more intervention threats.
Finally, the rupee ended at 83.51 (Provisional), stronger by 1 paisa from its previous close of 83.52 on Monday. The currency touched a high and low of 83.52 and 83.47 respectively.
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