Extending losses for the second straight day, Indian rupee ended weaker against the US dollar on Friday, on persistent dollar demand from importers. Investors remained cautious as United Nations World Economic Situation and Prospects (WESP) 2020 report lowered its GDP growth estimate for India to 5.7 percent in the current fiscal (from 7.6 percent forecast in WESP 2019) and lowered its forecast for the next fiscal to 6.6 percent (from 7.4 percent earlier). Lackluster trade in local equity markets along with dollar’s strength against major global currencies overseas also affected the rupee. However, losses remain capped as some optimism remained among the traders with Minister of State for Finance and Corporate Affairs, Anurag Singh Thakur’s statement that the Centre is taking several measures to boost consumption in a bid to put the country’s economy on the growth path. On the global front, dollar scaled an eight-month high against the yen on Friday after upbeat U.S. retail sales and jobs data.
Finally, the rupee ended at 71.08, 15 paise weaker from its previous close of 70.93 on Thursday. The currency touched a high and low of 71.10 and 70.94 respectively. The reference rate for the dollar stood at 70.90 and for Euro stood at 79.04 on January 16, 2020. While the reference rate for the Yen stood at 64.49, the reference rate for the Great Britain Pound (GBP) stood at 92.44.
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