Indian rupee depreciated against the US dollar on Friday as a surge in global crude oil prices and heightened geopolitical tensions rattled investor sentiment. Traders were cautious after Israel launched an airstrike on Iran and declared a special state of emergency, raising fears of oil supply disruption. Investors overlooked government data showing that retail inflation dipped to an over six-year low of 2.82 per cent in May mainly due to subdued prices of food items, including vegetables, fruits, and protein-rich items. The Consumer Price Index (CPI) based retail inflation was 3.16 per cent in April and 4.8 per cent in May 2024. On the global front, ringgit slipped against the US dollar on the final trading day of the week, reversing earlier gains as rising geopolitical concerns drove safe-haven demand for the greenback.
Finally, the rupee ended at 86.11 (Provisional), depreciated by 59 paise from its previous close of 85.52 on Thursday. The currency touched a high and low of 86.25 and 85.92 respectively.
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