Indian rupee depreciated for second straight session against the US dollar on Wednesday, due to increased demand of the greenback from the importers and the banks. Traders remained on sidelines ahead of the release of Consumer Price index (CPI) for January and Index of Industrial Production (IIP) data for December later in the day. Moreover, dollar’s strength against major global currencies overseas affected the rupee. However, losses remain capped as some optimism came with principal economic adviser at the finance ministry Sanjeev Sanyal’s statement that Indian economic growth is poised to bounce back after slipping to a more than six-year low of 4.5% in the July-September quarter as the government has taken measures to prop up investments and consumer demand. On the global front, dollar held near a four-month high on Wednesday amid hopes the spread of the coronavirus had slowed, with the New Zealand dollar gaining after the central bank dropped a bias towards lowering interest rates.
The last traded price of rupee was 71.34, 7 paise weaker from its previous close of 71.27 on Tuesday. The currency touched a high and low of 71.40 and 71.21 respectively. The reference rate for the dollar stood at 71.22 and for Euro stood at 77.70 on February 11, 2020. While the reference rate for the Yen stood at 64.80, the reference rate for the Great Britain Pound (GBP) stood at 92.00.
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