Indian rupee ended flat on Friday tracking foreign fund outflows. Traders got anxious with a private report that monsoon rains in India in the week through Wednesday were below average for the second straight week, the weather office said, raising concerns over production of summer-sown crops such as cotton, soybean, corn and rice. However, promising inflation and industrial production provided support to the domestic currency. Retail inflation eased to a three-month low of 5.59 per cent in July, mainly due to softening food prices, after holding above 6% for two months in a row. Besides, Industrial production surged by 13.6 per cent in June mainly due to a low-base effect and good performance by manufacturing, mining and power sectors but the output remained below the pre-pandemic level. On the global front, the U.S. dollar edged higher on Friday, on track for a second consecutive weekly gain versus its major rivals, as investors weighed the possibility of the Federal Reserve announcing its plans to reduce its stimulus in the coming weeks.
Finally, the rupee ended unchanged from its previous close of 74.25 on Thursday. The currency touched a high and low of 74.32 and 74.24 respectively.