Continuing its weakening trend for the fourth straight session, Indian rupee depreciated marginally against dollar on Tuesday, on increased demand for the US currency from importers. Traders remain concerned after the International Monetary Fund (IMF) cut its growth estimate for India to 4.8% for 2019. IMF Chief Economist Gita Gopinath said growth in India slowed sharply owing to stress in the non-bank financial sector and weak rural income growth. It also expects growth to be 5.8% in 2020 and rise to 6.5% in 2021. The weak trade in the local equity market also adversely impacted local forex trade. However, dollar losing sheen against other currencies overseas capped the losses to some extent. On the global front, yen rallied on Tuesday, as the spread of a pneumonia-like virus in China sparked a sudden bout of risk aversion and rattled world markets.
Finally, the rupee ended at 71.21, 10 paise weaker from its previous close of 71.11 on Monday. The currency touched a high and low of 71.24 and 71.13 respectively. The reference rate for the dollar stood at 71.05 and for Euro stood at 78.87 on January 20, 2020. While the reference rate for the Yen stood at 64.49, the reference rate for the Great Britain Pound (GBP) stood at 92.33.
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