Reversing previous session’s strong gains, Indian rupee fell sharply against the US dollar on Thursday as market participants turned jittery amid mounting fears of a coronavirus-led economic slowdown. Traders also remained cautious with Department-Related Parliamentary Standing Committee on Commerce's statement that the FDI equity inflow in manufacturing is declining and the sector's share in the total FDI inflow in 2018-19 was around 23% which is very low. It said the low inflow of FDI in the manufacturing sector defeats the very purpose of Make in India scheme. Traders awaited official numbers of Consumer Price Index (CPI) for February and Index of Industrial Production (IIP) for January, to be released later in the day. Weakening of the American currency in the overseas market and easing crude oil prices failed to cast any impact on the rupee. On the global front, dollar slid in another seismic shift to price in more US interest rate cuts on Thursday, as President Donald Trump sapped market confidence with a coronavirus plan light on details.
The last traded price of rupee was 74.25, 57 paise weaker from its previous close of 73.68 on Wednesday. The currency touched a high and low of 74.50 and 74.08 respectively. The reference rate for the dollar stood at 73.81 and for Euro stood at 83.79 on March 11, 2020. While the reference rate for the Yen stood at 70.64, the reference rate for the Great Britain Pound (GBP) stood at 95.46.
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