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Rupee depreciates against US dollar on Friday

11 Oct 2024 Evaluate

Indian rupee depreciated against the US dollar on Friday tracking a weak domestic equity market and continued FII outflows. Traders got anxious with a private report stating that India’s retail inflation, based on the Consumer Price Index, likely rose to 5.1% in September from 3.65% in August, primarily due to an unfavourable base effect. In September 2023, CPI inflation was at 5.02%. Some concern also came amid a private report stating that Reserve Bank of India's (RBI) decision to keep the repo rate unchanged and change the policy stance to neutral indicates that inflation is still the main concern for the central bank. On the global front, Japanese Yen (JPY) drifts lower against its American counterpart on Friday and stalls the previous day's recovery move from its lowest level since early August. Japanese Prime Minister Shigeru Ishiba's blunt comments on monetary policy, along with a drop in Japan's real wages for the first time in three months, a decline in household spending and signs that price pressures from raw material costs were subsiding raised doubts about the Bank of Japan's (BoJ) rate hike plans.

Finally, the rupee ended at 84.10 (Provisional), depreciated by 12 paise from its previous close of 83.98 on Thursday. The currency touched a high and low of 84.10 and 83.96 respectively.

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