Reversing previous session’s strong gains, Indian rupee witnessed significant fall against the US dollar on Monday as market participants turned jittery amid mounting fears of a coronavirus-led economic slowdown. Besides, yet another meltdown in the equity markets put pressure on the rupee. Traders remained cautious even as India’s Wholesale price index (WPI) inflation eased sharply to 2.26% for the month of February, 2020 as compared to 3.1% for the previous month and 2.93% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.92% compared to a build up rate of 2.75% in the corresponding period of the previous year. On the global front, dollar fell against a broad range of currencies on Monday after the U.S. Federal Reserve made another surprise interest rate cut and major central banks took steps to relieve a shortage of dollars and provide extra liquidity.
The last traded price of rupee was 74.27, 52 paise weaker from its previous close of 73.75 on Friday. The currency touched a high and low of 74.35 and 74.09 respectively. The reference rate for the dollar stood at 74.06 and for Euro stood at 82.95 on March 13, 2020. While the reference rate for the Yen stood at 70.21, the reference rate for the Great Britain Pound (GBP) stood at 93.00.
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