Indian rupee fell sharply against US dollar on Friday, on increased demand for the US currency from importers. Traders remained cautious with S&P Global Ratings’ report that a fast spreading coronavirus outbreak could knock $211 billion off the combined economies of the Asia-Pacific, with Japan, Hong Kong, Singapore and Australia among the most exposed. However, S&P did not cut growth forecasts for emerging markets of Indonesia, Malaysia, the Philippines and India, citing the fact that reported infections in those countries were still low. Across the global sell-off together with weakness in the Indian markets added to the woes of the Indian currency. However, rupee pared most of its losses on the back of easing crude oil prices and weakness in the dollar vis-a-vis other key global currencies. On the global front, Sterling extended gains against a broadly weaker dollar on Friday, and was also boosted by comments from the European Union's Brexit chief negotiator that a trade deal between Britain and the bloc was still possible this year.
The last traded price of rupee was 73.79, 46 paise weaker from its previous close of 73.33 on Thursday. The currency touched a high and low of 74.08 and 73.52 respectively. The reference rate for the dollar stood at 73.28 and for Euro stood at 81.61 on March 5, 2020. While the reference rate for the Yen stood at 68.27, the reference rate for the Great Britain Pound (GBP) stood at 94.36.
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