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Rupee depreciates against US dollar amid recovery in American currency index

21 Feb 2025 Evaluate

Indian rupee depreciated against the US dollar on Friday amid recovery in American currency index. Some concern came as Moody's Analytics said India's growth will slow to 6.4 per cent in 2025, from 6.6 per cent in 2024, as new US tariffs and softening global demand weigh on exports. Traders ignored the report that private sector output in India increased at the fastest pace in six months during February, amid a quicker expansion in services activity. The HSBC Flash India Composite Output Index was at 60.6 in February, up from a final reading of 57.7 in January. On the global front, British pound strengthened against other major currencies on Friday, as the U.K. retail sales expanded at the fastest pace in eight months in January due to the rebound in food store sales volume.

Finally, the rupee ended at 86.68 (Provisional), depreciated by 4 paise from its previous close of 86.64 on Thursday. The currency touched a high and low of 86.77 and 86.50 respectively.

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