Indian rupee depreciated marginally against dollar on Monday due to fresh demand for the American currency from banks and importers. Traders remain concerned with Moody's statement that India's nominal growth projection and fiscal deficit target for 2020-21 will be challenging to achieve. It added that the 10% nominal growth expectation that's in the 2021 budget is going to be challenging to achieve and as a result that would present some fiscal challenges as well. Moreover, dollar’s strength against major global currencies overseas affected the rupee. However, losses remain capped as some optimism came with SBI Research’s report that the revised 3.8 percent fiscal deficit for FY20 looks ambitious as it is based on projected 18% rise in tax collections against a paltry 5.1% higher realisaition so far, and around Rs 65,000 crore mop-up through disinvestment in the last two months of the current fiscal. On the global front, pound fell against the dollar on Monday after Boris Johnson laid out a hard-line approach to Brexit negotiations with Brussels, prompting renewed fears that Britain will leave the EU without a trade deal in 11 months.
Finally, the last traded price of rupee was 71.35, 3 paise weaker from its previous close of 71.32 on Friday. The currency touched a high and low of 71.66 and 71.32 respectively. The reference rate for the dollar stood at 71.50 and for Euro stood at 78.81 on January 31, 2020. While the reference rate for the Yen stood at 65.58, the reference rate for the Great Britain Pound (GBP) stood at 93.66.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: