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Rupee weakens against dollar on Friday

20 Mar 2020 Evaluate

Erasing all of its initial gains, Indian rupee depreciated marginally against the US dollar on Friday, amid buying in the American currency by banks and importers. Investor sentiments remained fragile as Crisil slashed the country’s economic growth forecast by 50 Basis points (bps) to 5.2 percent for fiscal year 2020-21 (FY21) as against earlier forecast of 5.7 percent expansion as the longer Covid-driven shutdowns will further roil the already weak economy. It said the Covid-19 pandemic will leave the economy crippled next fiscal. However, losses remain capped as some optimism came with Prime Minister Narendra Modi’s announcement of setting up of a 'COVID-19 Economic Response Task Force' to decide on relief package for sectors hit by the coronavirus outbreak. On the global front, dollar lost steam on Friday after an ascent that left it set for its biggest weekly gain since the 2008 global financial crisis, as the coronavirus pandemic caused a stampede for cash that has trampled asset markets.

The last traded price of rupee was 75.20, 8 paise weaker from its previous close of 75.12 on Thursday. The currency touched a high and low of 75.21 and 74.72 respectively. The reference rate for the dollar stood at 75.05 and for Euro stood at 82.03 on March 18, 2020. While the reference rate for the Yen stood at 69.06, the reference rate for the Great Britain Pound (GBP) stood at 86.62. 

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