Indian rupee ended at an all-time low against the US dollar on Wednesday, as global trade war concerns fuelled risk aversion among investors. Investors remained cautious ahead of the Reserve Bank of India's monetary policy meeting this week. There are expectations of a 25 basis-points rate cut in benchmark policy rates, which will be the first in five years, as inflation remains within the central bank's comfort zone. Some concern also came as India's services sector activity expanded at the slowest pace in over two years in January amid softer increases in sales and output. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.3 in December to 56.5 in January, its lowest level since November. On the global front, the US dollar retreated on Wednesday, trading on the backfoot since the deal between the Trump administration and both Canada and Mexico to delay tariffs, while the euro gained despite regional services activity disappointment.
Finally, the rupee ended at 87.43 (Provisional), depreciated by 36 paise from its previous close of 87.07 on Tuesday. The currency touched a high and low of 87.49 and 87.11 respectively.
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