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Rupee ends tad lower against dollar on Monday

20 Jan 2020 Evaluate

Indian rupee ended marginally lower against US dollar on Monday, due to fresh demand for the American currency from banks and importers. Traders remained cautious with the former finance secretary Subhash Chandra Garg’s statement that the government's tax collection is likely to fall short of its estimate by Rs 2.5 lakh crore or 1.2% of GDP in 2019-20, and called for scrapping of dividend distribution tax. The domestic currency was also weighed down the dollar's strengthen against some other currencies overseas along with sharp losses in the local equities. However, losses were limited as traders found some support with Union Road Transport and Highways Minister Nitin Gadkari’s statement that the goal of making India a $5 trillion economy by 2024 was difficult but not impossible. He added that it can be achieved by increasing domestic production and reducing dependence on imports. On the global front, dollar held near a one-month high against major currencies on Monday after last week's run of data confirmed that the United States economy is holding up well.

Finally, the rupee ended at 71.11, 3 paise weaker from its previous close of 71.08 on Friday. The currency touched a high and low of 71.15 and 71.03 respectively. The reference rate for the dollar stood at 71.04 and for Euro stood at 79.13 on January 17, 2020. While the reference rate for the Yen stood at 64.45, the reference rate for the Great Britain Pound (GBP) stood at 92.94.

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