Indian rupee ended weaker against the US dollar on Wednesday, on the back of consistent demand for the greenback from state-run banks and importers. Sentiments remained down-beat as Fitch Solutions raised India's fiscal deficit forecast to 3.6 percent of the GDP for this fiscal year, from 3.4 percent previously, due to weak revenue collections resulting from sluggish economic growth and government's sweeping corporate tax rate cut. Market participants paid no heed towards Finance Minister Nirmala Sitharaman’s statement that the government is eager to modify rules and boost investment in the infrastructure space. She also said the government is focusing on real estate as part of a broader plan to kick-start economic growth. On the global front, dollar held its ground against other major currencies on Wednesday, supported by rising hopes for a US-China trade deal and an improving outlook for the US economy.
Finally, the rupee ended at 70.97, 28 paise weaker from its previous close of 70.69 on Tuesday. The currency touched a high and low of 71.01 and 70.77 respectively. The reference rate for the dollar stood at 70.72 and for Euro stood at 78.70 on November 5, 2019. While the reference rate for the Yen stood at 65.01, the reference rate for the Great Britain Pound (GBP) stood at 91.11.
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