Indian rupee trimmed most of its early gains but still managed to end higher against the American currency on Friday, on continued selling of the US currency by banks and exporters. This was the third consecutive sessions when the rupee closed higher. Traders took some solace with Union Minister of state for heavy industries and public enterprises, Arjun Ram Meghwal’s statement that the government will do everything to ensure that the economy remains on track and is not weakened so that the country reaches its target of $5 trillion economy. Besides, good going in the local equity markets supported the rupee. However, gains were capped as anxiety remained among the traders with CARE Ratings revised the India’s GDP estimate downward from 6.7-6.8% earlier to 6.4-6.5% for FY20 with the underlying GVA growth of 6.3-6.4% on account of subdued growth in the industrial sector and weakness in the agricultural sector during Q1FY20. On the global front, dollar was higher against haven currencies on Friday in Europe, after signs of robust job creation in the U.S. last month.
Finally, the rupee ended at 71.72, 12 paise stronger from its previous close of 71.84 on Thursday. The currency touched a high and low of 71.89 and 71.59 respectively. The reference rate for the dollar stood at 71.86 and for Euro stood at 79.20 on September 5, 2019. While the reference rate for the Yen stood at 67.47, the reference rate for the Great Britain Pound (GBP) stood at 87.88.
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