Indian rupee witnessed range-bound trading session and settled flat against the US dollar on Tuesday, as weak domestic markets and a surge in crude oil prices weighed on investor sentiments. Risk aversion in the global markets amid heightened geopolitical tension in the Middle East between Israel and Iran also dented sentiments. Foreign fund outflows also weighted down on the local unit. However, sharp fall in retail inflation supported the rupee. India's Consumer Price Index (CPI) inflation dropped to 3.54 per cent in July 2024, its lowest in nearly five years, largely driven by a decline in vegetable prices. However, On the global front, Pound Sterling rose against all major currencies, after official data showed employment rising and the unemployment rate falling late in the second quarter.
Finally, the rupee ended flat at its previous close of 83.97 on Monday. The currency touched a high and low of 83.97 and 83.94 respectively.
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