Indian rupee pared all of its initial gains and ended unchanged compared to its previous close as rising crude oil prices, a strong US dollar and the emergence of profit booking in domestic equities weighted on domestic unit. However, traders took support with data showing that retail inflation declined to a nearly 6-year low of 3.16 per cent in April, mainly on account of subdued prices of vegetables, fruits, pulses, and other protein-rich items, and remains within the comfort zone of the Reserve Bank. The Consumer Price Index (CPI) based inflation was 3.34 per cent in March and 4.83 per cent in April 2024. It was 3.15 per cent in July 2019. On the global front, the dollar retreated slightly on Tuesday but held on to most of the previous session’s gains on lingering optimism over a tariff deal between the United States and China, which tapped the brakes on a trade war between the world’s two largest economies.
Finally, the rupee ended unchanged from its previous close of 85.36 (Provisional) on Friday. The currency touched a high and low of 85.48 and 84.62 respectively.
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