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Indian rupee depreciates on Tuesday
Jan-07-2025

Indian rupee depreciated on Tuesday as outflow of foreign funds continued to weigh on the local unit. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,575.06 crore on Monday. Traders overlooked domestic rating agency ICRA’s report stating that securitization volumes jumped 80 per cent on-year to Rs 68,000 crore in the December quarter (Q3FY25), and has also upped its estimates on total volumes for this financial year (FY25). The financial system is estimated to witness securitization deals, where a lender passes on future receivables to another stakeholder against upfront cash, of around Rs 2.4 lakh crore, up from the previously estimated Rs 2.1 lakh crore. The new estimate represents a 25 per cent increase over the Rs 1.92 lakh crore in FY24. On the global front, U.S. dollar was close to a one-week low on Tuesday as markets await U.S. economic data while assessing whether President-elect Donald Trump's policies on tariffs will align with his rhetoric.

Finally, the rupee ended at 85.74 (Provisional), depreciated by 6 paise from its previous close of 85.68 on Monday. The currency touched a high and low of 85.80 and 85.65 respectively.


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