Indian rupee appreciated against the US dollar on Wednesday boosted by the renewed inflow of foreign funds and a weak American currency. Some optimism came as retail inflation dipped marginally to a nearly six-year low of 3.34 per cent in March due to decline in prices of vegetables, eggs and protein-rich items, raising hope for a third rate cut by the RBI as it remains below the median target of 4 per cent. Meanwhile, commerce ministry in its latest data has showed that India's merchandise exports, after four months of decline, turned positive and grew marginally by 0.7 per cent to $41.97 billion in March 2025 as compared to $ 41.69 billion in March 2024. On the global front, U.S. dollar weakened against other major currencies in the early European session on Wednesday, amid declining confidence in the U.S. economy and rising speculations that the Federal Reserve (Fed) will shortly start a new cycle of rate cuts.
Finally, the rupee ended at 85.64 (Provisional), appreciated by 16 paise from its previous close of 85.80 on Tuesday. The currency touched a high and low of 85.72 and 85.50 respectively.
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