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Rupee depreciates on Wednesday
Jan-08-2025

Indian rupee depreciated on Wednesday amid stronger American currency and lackluster sentiment in domestic equity markets. Traders were concerned as the First Advance Estimates released by the National Statistics Office (NSO) estimated that Indian economy to slow to a four-year low of 6.4 per cent in FY25, falling short of the Reserve Bank of India’s (RBI’s) projection of 6.6 per cent. In FY24, gross domestic product (GDP) had grown at 8.2 per cent. Separately, driven by a slowdown in government capital expenditure and sluggish private investments, growth in infrastructure investment is expected to moderate in the current financial year (FY25) compared to FY24. On the global front, Sterling slid for a second day on Wednesday against a generally firmer U.S. dollar, despite British borrowing costs sitting at around their highest in 27 years. 

Finally, the rupee ended at 85.91 (Provisional), depreciated by 16 paise from its previous close of 85.75 on Tuesday. The currency touched a high and low of 85.91 and 85.82 respectively.

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