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Rupee settles higher against dollar on Tuesday

14 Jan 2025 Evaluate

Indian rupee rebounded from its lowest-ever level and ended higher against dollar on Tuesday, on fresh selling of American currency by banks and exporters. Some recovery in domestic equity markets after the release of macroeconomic numbers also supported the Indian currency. Retail inflation eased to a four-month low of 5.22 percent in December compared to 5.48 percent in November. The inflation based on Consumer Price Index (CPI) was 5.69 percent in December 2023. The decrease in December’s inflation was largely attributed to a notable drop in prices of key food items, including vegetables, pulses, sugar, and cereals. However, gains remain capped as data showed wholesale price inflation rose to 2.37 per cent in December 2024, led by a spike in manufactured products even though prices of food items eased. On the global front, the dollar rose towards its highest level in more than two years on Tuesday as strong economic data led investors to scale back bets on Federal Reserve rate cuts, while potential U.S. tariffs remained in the spotlight.  

Finally, the rupee ended at 86.58 (Provisional), appreciated by 12 paise from its previous close of 86.70 on Monday. The currency touched a high and low of 86.70 and 86.45 respectively.


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