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Rupee depreciates on Wednesday amid dollar demand
May-21-2025

Indian rupee depreciated against the US dollar on Wednesday on dollar demand from importers and foreign banks as well as surge in crude oil prices. Traders were worried as Ministry of Commerce & Industry in its latest data has showed that the output of eight key infrastructure sectors slowed down to an eight-month low of 0.5 per cent in April 2025 due to contraction in the production of crude oil, refinery products and fertiliser. The key infrastructure sectors’ output had expanded by 6.9 per cent in April 2024. On the global front, U.S. dollar weakened against other major currencies in the Asian session on Wednesday amid increased risk-on mood, as some traders are still looking to cash in on the strong upside in the markets seen over the past several weeks.

Finally, the rupee ended at 85.59 (Provisional), depreciated by 1 paisa from its previous close of 85.58 on Tuesday. The currency touched a high and low of 85.70 and 85.53 respectively.

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