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Rupee ends marginally higher against US dollar
May-14-2025

Indian rupee pared most of its initial gains and ended the day marginally higher against the American currency on Wednesday, supported by gains in domestic equities and positive macroeconomic data. India's retail inflation eased to a nearly six-year low of 3.16 per cent in April, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review. Besides, wholesale price inflation dropped to a 13-month low of 0.85 per cent in April with softening in prices of food articles, fuel and manufactured products. Moreover, the weakness of the American currency in the overseas market and rising appetite for riskier assets amid easing trade tariff tensions boosted investors' sentiments. However, gains remained capped as some concern came with the exchange data showing that foreign institutional investors (FIIs) offloaded equities worth Rs 476.86 crore on a net basis on Tuesday. On the global front, the U.S. dollar extended losses on Wednesday following its biggest decline in more than three weeks overnight after weaker-than-expected U.S. consumer inflation data bolstered the case for Federal Reserve easing just as global trade tensions cool. 

Finally, the rupee ended at 85.32 (Provisional), appreciated by 4 paise from its previous close of 85.36 on Tuesday. The currency touched a high and low of 85.52 and 85.05 respectively.


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