Indian rupee depreciated against the U.S. dollar on Thursday as strong demand for dollar continues. Sentiments were downbeat with survey showing that India’s manufacturing activity grew in December at its weakest pace for the year amid softer demand and despite easing cost pressures and strong jobs growth, dulling the outlook for the start of 2025. The HSBC final India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, fell to 56.4 - the weakest since December 2023 - little changed from November’s 56.5 but below an early estimate that showed a rise to 57.4. On the global front, dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations U.S. interest rates will remain high relative to peers.
Finally, the rupee ended at 85.75 (Provisional), depreciated by 10 paise from its previous close of 85.65 on Wednesday. The currency touched a high and low of 85.79 and 85.68 respectively.
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