Erasing all of its initial gains, Indian rupee depreciated considerably for second straight session against the US dollar on Monday, amid buying in the American currency by banks and importers. Investor sentiments remained fragile as the government data showing that Q3 GDP growth slowed a 7-year low of 4.7% on the back of a continued slump in manufacturing and escalating coronavirus fears. Some pessimism also came with a private survey showed India's factory activity growth slowed in February from the previous month's eight-year high due to a modest weakening in demand and output, although overall conditions remained firm. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 54.5 last month from January's 55.3. The rupee’s losses were also caused by late hour sell-off in domestic equity market. On the global front, Euro steadied on Monday after their worst weekly showing since the 2008 financial crisis, as traders swung their attention to the extra injections of support they now expect major central banks to provide following the virus outbreak.
The last traded price of rupee was 72.73, 49 paise weaker from its previous close of 72.24 on Friday. The currency touched a high and low of 72.73 and 72.04 respectively. The reference rate for the dollar stood at 72.18 and for Euro stood at 79.44 on February 28, 2020. While the reference rate for the Yen stood at 66.30, the reference rate for the Great Britain Pound (GBP) stood at 93.01.
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