Indian rupee pared most of its early losses but still weakened marginally against the American currency on Wednesday, due to fresh dollar demand from banks and importers. Investor sentiment remained fragile amid concerns over the impact of coronavirus. Union Health Minister Harsh Vardhan said the numbers of confirmed cases in India have risen to 28 and the government is readying an action plan. Traders also remained cautious as foreign direct investment (FDI) into India dipped marginally by 1.4% to $10.67 billion (about Rs 76,800 crore) during October-December period of 2019-20. However, local unit cut most of the early losses, taking support from the survey report showing that India’s services sector growth jumped to over 7-year high in the month of February 2020, with rise new export orders and strengthening business confidence. The IHS Markit India Services Business Activity Index increased for the fifth successive month in February to 57.5 from 55.5 in January after dipping to a 19-month low in September 2019. On the global front, euro held near two-month highs and the dollar recouped some losses on Wednesday as traders evaluated the impact of an emergency Fed rate cut a day earlier.
The last traded price of rupee was 73.22, 3 paise weaker from its previous close of 73.19 on Tuesday. The currency touched a high and low of 73.64 and 72.90 respectively. The reference rate for the dollar stood at 72.87 and for Euro stood at 81.23 on March 3, 2020. While the reference rate for the Yen stood at 67.62, the reference rate for the Great Britain Pound (GBP) stood at 93.14.
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