Indian rupee depreciated against the US dollar on Thursday amid sustained foreign fund outflows. Traders were cautious as private report said that India's retail inflation in September likely overshot the Reserve Bank of India's (RBI) 4 per cent medium-term target for the first time since July due to a persistent rise in vegetable prices and a lower year-ago base. Investors overlooked the Reserve Bank of India's (RBI) latest ‘Industrial Outlook Survey of the Manufacturing Sector for Q2:2024-25’ stating that manufacturers maintained their optimism on demand conditions for Q3:2024-25. On the global front, U.S. dollar rose against the yen on Thursday before dipping as markets grew more confident about a patient approach by the Federal Reserve to further monetary easing, even as a key inflation report loomed later in the day.
Finally, the rupee ended at 83.98 (Provisional), depreciated 1 paisa from its previous close of 83.97 on Wednesday. The currency touched a high and low of 83.98 and 83.95 respectively.
