Indian rupee settled lower on Thursday even as both the domestic equity benchmark indices touched all-time high levels. Sentiments were down beat as India’s industrial production growth measured in terms of the Index of Industrial Production (IIP) slipped to 3-month low of 5 per cent in April 2024, as compared with a revised estimate of 5.4% in March, mainly due to poor show by the manufacturing sector, though mining and power segments performed well. Investors overlooked the report that Consumer Price Index (CPI) based retail inflation continued its downward slide to reach 12-month low of 4.75 per cent in May as compared to 4.83 per cent in April 2024, due to a marginal decline of prices in the food basket. On the global front, the dollar edged up on Thursday, recovering some of the losses sparked by softer than expected U.S. inflation data on Wednesday, after the Federal Reserve forecast just one rate cut this year.
Finally, the rupee ended at 83.54 (Provisional), weaker by 6 paise from its previous close of 83.48 on Wednesday. The currency touched a high and low of 83.55 and 83.51 respectively.
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