Erasing all of the initial gains, Indian rupee ended weaker against dollar on Wednesday, on emergence of demand for the greenback from importers. Traders turned cautious as the International Monetary Fund (IMF) has cut its projection for India's economic growth to 1.9% for the current financial year, the lowest since the 1991 balance of payments (BoP) crisis, against its 5.8% forecast earlier. Investors’ sentiment also remained fragile amid concerns over the impact of coronavirus outbreak on the domestic as well as global economy. However, losses remain capped as some support came with the government data showing that the consumer Price Index-based (CPI) inflation eased for the second month in a row in March, at 5.91%, on the back of further reduction in rate of food inflation. On the global front, dollar nursed losses on Wednesday as investors cautiously stepped into riskier currencies after U.S. President Donald Trump edged toward rolling back some restrictions put in place to contain the coronavirus outbreak.
Finally, the rupee ended at 76.44, 17 paise weaker from its previous close of 76.27 on Monday. The currency touched a high and low of 76.48 and 75.99 respectively. The reference rate for the dollar stood at 76.36 and for Euro stood at 83.56 on April 13, 2020. While the reference rate for the Yen stood at 70.80, the reference rate for the Great Britain Pound (GBP) stood at 95.36.
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