Indian rupee depreciated on Wednesday amid surge in crude oil prices and importer demand for the American currency. Traders were cautious after International Monetary Fund (IMF) in its World Economic Outlook (WEO) report for April has lowered growth projection for India to 6.2 per cent for the fiscal year 2025-26 (FY26), from earlier estimated rate of 6.5 per cent. The growth of the Indian economy is supported by private consumption, especially in the rural areas but this rate is 0.3 percentage points lower than in the January 2025 WEO estimate, impacted by the trade tensions and global uncertainties. On the global front, British pound weakened against other major currencies in the European session on Wednesday, after the U.K. private sector activity deteriorated for the first time in one-and-a-half years in April amid weaker foreign demand linked to tariff uncertainty.
Finally, the rupee ended at 85.45 (Provisional), depreciated by 25 paise from its previous close of 85.20 on Tuesday. The currency touched a high and low of 85.52 and 85.24 respectively.
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