Indian rupee appreciated against the U.S. dollar on Thursday supported by sustained foreign institutional investor (FII) buying. Investors overlooked the report that World Bank in its latest ‘South Asia Development Update’ has lowered India’s economic growth forecast for 2025-26 by 40 basis points to 6.3 per cent, over global economic weakness and policy uncertainty. In India, growth is expected to slow from 6.5 per cent in 2024-25 to 6.3 per cent in 2025-26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty. On the global front, Australian dollar weakened against other major currencies in the Asian session on Thursday, as some traders speculate that the Reserve Bank of Australia (RBA) is likely to lower interest rates by 25 basis points at its next month meeting.
Finally, the rupee ended at 85.33 (Provisional), appreciated by 12 paise from its previous close of 85.45 on Wednesday. The currency touched a high and low of 85.67 and 85.25 respectively.
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