Indian rupee settled lower on Thursday due to foreign capital outflows and rising crude oil prices overseas. Traders ignored the report that India Ratings and Research (Ind-Ra) projects that India's current account balance (CAB) will achieve a surplus of approximately $6 billion (0.6 per cent of GDP) in the fourth quarter of the fiscal year 2024 (Q4FY24). This marks the first surplus since the first quarter of fiscal year 2022 (1QFY22), a significant turnaround from the previous quarter's deficit of $10.5 billion (1.2 per cent of GDP). On the global front, euro firmed a touch on Thursday ahead of a policy decision from the European Central Bank (ECB) where traders consider a rate cut all but certain, while the dollar eased on renewed bets of a U.S. Federal Reserve easing cycle expected this year.
Finally, the rupee ended at 83.51 (Provisional), weaker by 6 paise from its previous close of 83.45 on Wednesday. The currency touched a high and low of 83.51 and 83.40 respectively.
