Indian rupee settled higher on Wednesday amid softening crude oil prices. Traders got support after an article on the state of the economy published in the Reserve Bank of India’s (RBI's) May Bulletin noted that India is likely to grow by 7.5 per cent in the first quarter of the current financial year (Q1FY25), with rising aggregate demand and non-food spending in the rural economy. Investors overlooked report that domestic rating agency ICRA projected India's GDP growth to moderate to a four quarter low of 6.7 per cent in March quarter of 2023-24 fiscal. For the full 2023-24 fiscal, ICRA estimates GDP growth to come in at 7.8 per cent. On the global front, the pound jumped on Wednesday after data showed UK inflation neared the Bank of England's target in April, but did not slow as much as expected, leaving the chances of a June rate cut unchanged at around 50%.
Finally, the rupee ended at 83.30 (Provisional), up by 1 paisa from its previous close of 83.31 on Tuesday. The currency touched a high and low of 83.30 and 83.22 respectively.
