Indian rupee ended weaker against the American currency on Thursday, due to fresh dollar demand from banks and importers. Traders remain concerned with a private report that rising inflation is expected to keep the Reserve Bank of India from cutting rates again until late this year, while an expansionary federal budget due next month attempts to put a floor under rapidly-slowing growth. However, a positive trend in the domestic equity market and easing crude oil prices supported the rupee and restricted the fall. On the global front, Japanese yen strengthened on Thursday as investors grew more anxious about the spread of a virus in China, while the euro was calm ahead of the European Central Bank meeting.
Finally, the rupee ended at 71.26, 7 paise weaker from its previous close of 71.19 on Wednesday. The currency touched a high and low of 71.35 and 71.16 respectively. The reference rate for the dollar stood at 71.20 and for Euro stood at 78.91 on January 22, 2020. While the reference rate for the Yen stood at 64.71, the reference rate for the Great Britain Pound (GBP) stood at 93.01.
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