Indian rupee ended lower for second day against dollar on Friday, on persistent dollar demand from importers. Investors remained cautious amid a private report that government's tax revenue shortfall for FY20 is estimated to be at around Rs 2 lakh crore. The revenue shortfall from direct tax sources is being pegged at around Rs 1.5 lakh crore to Rs 1.8 lakh crore, while that from indirect sources is estimated to be at around Rs 30,000 crore to Rs 60,000 crore. Rise in crude oil prices and dollar's strength against some other currencies overseas also impacted the rupee movement. However, a firm trend in domestic equities kept the downside in check. On the global front, euro held near seven-week lows on Friday after the European Central Bank struck a more dovish tone at Thursday's meeting than some had expected.
Finally, the rupee ended at 71.33, 7 paise weaker from its previous close of 71.26 on Thursday. The currency touched a high and low of 71.34 and 71.22 respectively. The reference rate for the dollar stood at 71.24 and for Euro stood at 78.95 on January 23, 2020. While the reference rate for the Yen stood at 65.05, the reference rate for the Great Britain Pound (GBP) stood at 93.47.
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