Extending its gaining streak for a third straight day, Indian rupee ended significantly higher against dollar on Thursday, on persistent selling of the American currency by exporters. Sentiments were buoyed with industry body FICCI’s statement that the government should infuse capital in the economy without worrying about the fiscal deficit target as the GDP growth is estimated to slip to 11-year low of 5% during 2019-20. A spectacular relief rally in local equities coupled with softening crude oil prices also supported the forex sentiment. Traders paid no heed towards the World Bank’s latest report stating that growth in India is projected to decelerate to 5% in financial year (FY) 2019/20, which ends March 31, amid enduring financial sector issues. On the global front, US dollar rose on Thursday, as investors’ fears over escalating US-Iran tensions eased following US President Donald Trump’s remarks on an Iran attack.
Finally, the rupee ended at 71.21, 49 paise stronger from its previous close of 71.70 on Wednesday. The currency touched a high and low of 71.52 and 71.17 respectively. The reference rate for the dollar stood at 72.01 and for Euro stood at 80.31 on January 8, 2020. While the reference rate for the Yen stood at 66.45, the reference rate for the Great Britain Pound (GBP) stood at 94.57.
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