Indian rupee depreciated against US dollar, weighed down by sustained foreign fund outflows and an uptick in the US Dollar index. Traders were worried as India’s exports declined for the third month in a row in January by 2.38% to $37.32 billion due to volatility in petroleum prices and global uncertainties. Investors overlooked report that credit rating agency ICRA has projected the year-on-year (YoY) expansion of India’s Gross domestic product (GDP) to rise to 6.4% in Q3FY2025 from the seven-quarter low of 5.4% in Q2FY2025, benefitting from enhanced Government spending amid uneven consumption. On the global front, British pound strengthened against other major currencies on Tuesday, following the release of positive U.K. employment figures for the three months ending December.
Finally, the rupee ended at 86.98 (Provisional), depreciated by 9 paise from its previous close of 86.89 on Monday. The currency touched a high and low of 86.98 and 86.91 respectively.
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