The Indian rupee appreciated by 8 paise to close at 82.96 against the US dollar on Thursday after the government hinted at faster fiscal consolidation and lower borrowings in its interim Budget for 2024-25. Finance Minister Nirmala Sitharaman in her budget said on Thursday that the government will raise Rs 14.13 lakh crore from the market by issuing dated securities in 2024-25. The countrys fiscal deficit is expected to settle at 5.8% in the current fiscal, better than the budget estimate of 5.9%. Sitharaman reaffirmed that the government would continue on the path of fiscal consolidation, reaching a fiscal deficit below 4.5% by FY26. FY25 net borrowing is seen at Rs 11.75 lakh crore. However, a strong greenback against major rivals overseas and subdued domestic equity markets restricted the sharp gain in the domestic unit. Dollar firmed up after Federal Reserve announcement to maintain interest rates at current higher levels. The Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent.
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