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Rupee depreciates against dollar on Thursday amid dollar demand
May-22-2025

Indian rupee depreciated against the U.S. dollar on Thursday on dollar demand from importers and foreign banks as well as surge in crude oil prices. Traders paid no heed towards the HSBC Flash India PMI report showing that private sector growth in India moved up a gear during May, boosted by acceleration in the service economy. The HSBC Flash India Composite Output Index surged to 61.2 in May from a final reading of 59.7 in April. The HSBC Flash India Manufacturing PMI index also rose to 58.3 in May from 58.2 in April. On the global front, Antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Thursday on increased risk-off sentiment, following the broadly negative cues from Wall Street overnight, amid rising treasury yields on concerns about the fiscal impact of a new U.S. tax bill on the country's deficit.

Finally, the rupee ended at 85.96 (Provisional), depreciated by 37 paise from its previous close of 85.59 on Wednesday. The currency touched a high and low of 86.11 and 85.58 respectively.

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