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Rupee ends lower against dollar on Thursday

02 Jan 2020 Evaluate

Indian rupee ended weaker against the American currency on Thursday, amid sustained rise in crude oil prices and foreign fund outflows. Sentiments remained down-beat despite Indian manufacturing industry saw a solid rise in their activities in the month of December 2019, on account of rising new orders and output. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance -surged to 52.7 in December from 51.2 in November. A strengthening US dollar against major global currencies also affected rupee's trading pattern, while an encouraging rally in domestic equities kept the downside in check. On the global front, dollar snapped a six-day losing streak to add 0.2 per cent on Thursday, the first trading day of 2020, pushing the euro off five-month highs while the offshore yuan shrugged off reserve ratio cuts that could add $115 billion worth of liquidity.

Finally, the rupee ended at 71.38, 16 paise weaker from its previous close of 71.22 on Wednesday. The currency touched a high and low of 71.38 and 71.26 respectively. The reference rate for the dollar stood at 71.37 and for Euro stood at 80.03 on January 1, 2020. While the reference rate for the Yen stood at 65.69, the reference rate for the Great Britain Pound (GBP) stood at 94.64.

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