Continuing strong recovery momentum for the second day, Indian rupee ended higher against US dollar on Thursday, driven by weakening of the greenback in overseas markets. Traders took support with the government data showed that foreign direct investment into India grew by 28 percent to $16.33 billion during the first quarter of the current fiscal. Inflow of FDI during April-June of 2018-19 stood at $12.75 billion. Market participants paid no heed towards domestic credit rating agency CRISIL cut India’s current financial year (FY20) Gross domestic products (GDP) growth forecast to 6.3% from its earlier forecast of 6.9%. The agency said that lower GDP growth forecast corroborates that India’s economic slowdown is deeper and more broad-based than suspected. On the global front, safe-haven dollar and yen fell on Wednesday after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain.
Finally, the rupee ended at 71.84, 28 paise stronger from its previous close of 72.12 on Wednesday. The currency touched a high and low of 71.98 and 71.79 respectively. The reference rate for the dollar stood at 72.07 and for Euro stood at 79.10 on September 4, 2019. While the reference rate for the Yen stood at 67.89, the reference rate for the Great Britain Pound (GBP) stood at 87.28.
