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Rupee slips for third day on Monday

27 Jan 2020 Evaluate

Indian rupee continued to slip for the third consecutive session against the US dollar on Monday, following buying in the American currency by banks and importers. Traders remain worried with a private report indicating that the country's fiscal deficit for 2019-20 is expected to widen to 3.8% and the upcoming Budget may set a target of 3.5% for 2020-21. Traders also reacted negatively to private report that India's corporate and income tax collection for the current year is likely to fall for the first time in at least two decades, amid a sharp fall in economic growth and cut in corporate tax rates. The domestic currency was also weighed down by dollar's strengthen against some other currencies overseas along with sharp losses in the local equities. On the global front, euro fell on Monday as growing concerns over the potential economic damage from a fast-spreading coronavirus sapped demand for riskier assets.

Finally, the rupee ended at 71.44, 10 paise weaker from its previous close of 71.33 on Friday. The currency touched a high and low of 71.51 and 71.38 respectively. The reference rate for the dollar stood at 71.24 and for Euro stood at 78.69 on January 24, 2020. While the reference rate for the Yen stood at 65.04, the reference rate for the Great Britain Pound (GBP) stood at 93.50.

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