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Rupee depreciates against dollar on Thursday

30 Jan 2020 Evaluate

Indian rupee depreciated against the American currency on Thursday, due to fresh dollar demand from banks and importers. Sentiments remained down-beat as India Ratings and Research (Ind-Ra) expects aggregate fiscal deficit of the states to come close to 3% of gross domestic product in FY21. In its note, it has revised the outlook on state finances to stable-to-negative for FY21 from stable. Market participants also remained cautious ahead of the Union Budget that will be released later this week. The weak trade in the local equity market along with dollar's strengthen against some other currencies also adversely impacted local forex trade. On the global front, dollar held near a two-month high against a basket of major currencies on Thursday as investors tried to shield themselves from assets that could be hit by China's virus epidemic.

Finally, the last traded price of rupee was 71.49, 22 paise weaker from its previous close of 71.27 on Wednesday. The currency touched a high and low of 71.61 and 71.39 respectively. The reference rate for the dollar stood at 71.18 and for Euro stood at 78.42 on January 29, 2020. While the reference rate for the Yen stood at 65.24, the reference rate for the Great Britain Pound (GBP) stood at 92.71.

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