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Indian rupee depreciates on Tuesday amid ongoing geopolitical tensions
May-06-2025

Indian rupee depreciated against the US dollar on Tuesday amid growing uncertainty and a cautious recalibration of risk appetite. Traders were cautious as Moody's Ratings cut India's GDP growth projections for 2025 to 6.3 per cent, from 6.5 per cent, saying economies globally will see a slowdown on account of heightened US policy uncertainty and trade restrictions. In its Global Macro Outlook 2025-26 (May update), Moody's said geopolitical stresses, like tension between India and Pakistan, also have a potential downside risk to its baseline growth forecasts. Investors ignored the report that India’s Services Purchasing Managers' Index (PMI) for April 2025, compiled by S&P Global, rose to 58.7, an increase from 58.5 recorded in March. On the global front, Japanese yen strengthened against other major currencies in the European session on Tuesday, as European stocks traded lower as investors assessed the latest batch of earnings and awaited upcoming Fed and BoE meetings.

Finally, the rupee ended at 84.40 (Provisional), depreciated by 10 paise from its previous close of 84.30 on Monday. The currency touched a high and low of 84.63 and 84.26 respectively.

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