Indian rupee ended sharply lower against the US dollar on Wednesday on increased demand for the American unit from importers. Traders remained on sidelines as the central government mulls over lockdown extension beyond April 14 amid the spread of coronavirus. Traders also remain worried as ratings agency ICRA predicted that India's economy is likely to witness a sharp contraction of 4.5 per cent during Q4FY2020 and is expected to post a GDP growth of just 2 percent in FY2021. Besides, a strong dollar in world markets along with volatility seen in the domestic equity market exerted pressure on the rupee. On the global front, dollar firmed on Wednesday as optimism that the coronavirus crisis was slowing waned, increasing investors' concern over the economic impact of the pandemic.
Finally, the rupee ended at 76.34, 70 paise weaker from its previous close of 75.64 on Tuesday. The currency touched a high and low of 76.34 and 75.81 respectively. The reference rate for the dollar stood at 75.84 and for Euro stood at 82.13 on April 7, 2020. While the reference rate for the Yen stood at 69.68, the reference rate for the Great Britain Pound (GBP) stood at 93.16.
