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Indian rupee depreciates on Tuesday
Dec-31-2024

Indian rupee depreciated on Tuesday on significant foreign fund outflows and a strong greenback in global markets. Traders were concerned with the data released by the Finance Ministry showing that India's external debt rose to $ 711.8 billion as of September this year, up 4.3 per cent over June 2024. Traders overlooked RBI report stating that the Indian economy is exhibiting resilience and stability, and the gross domestic product (GDP) is projected to grow at 6.6 per cent in 2024-25, aided by a revival in rural consumption, a pickup in government consumption and investment, and strong services exports. On the global front, dollar slipped on the last trading day of the year on Tuesday but was poised to clock strong gains in 2024 against almost all currencies as investors prepared for fewer U.S. rate cuts and the incoming Trump administration.

Finally, the rupee ended at 85.64 (Provisional), depreciated by 12 paise from its previous close of 85.52 on Monday. The currency touched a high and low of 85.66 and 85.54 respectively.

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