Reversing its two-session fall, Indian rupee bounced back sharply against the US currency on Wednesday, on persistent selling of the American currency by exporters. Sentiments turned optimistic with PHD Chamber of Commerce and Industry President D K Aggarwal’s statement that the volatility in the rupee and stock markets is short-lived and primarily driven by the spread of Coronavirus disease (COVID) in many countries. He also said that the markets are expected to stabilise, as the fundamentals of the Indian economy are strong enough to withstand the external shocks on the back of robust economic reforms undertaken by the government during the last many years. Dollar losing sheen against some other currencies overseas also supported the forex sentiment. On the global front, U.S. dollar resumed its descent against the Japanese yen on Wednesday as fears over the spreading coronavirus pushed investors into safe havens, while the British pound recovered after Bank of England unexpectedly cut interest rates.
The last traded price of rupee was 73.62, 55 paise stronger from its previous close of 74.17 on Monday. The currency touched a high and low of 74.01 and 73.55 respectively. The reference rate for the dollar stood at 73.95 and for Euro stood at 84.33 on March 9, 2020. While the reference rate for the Yen stood at 72.06, the reference rate for the Great Britain Pound (GBP) stood at 96.66.
