Reversing its two-session fall, Indian rupee bounced back to end higher against the US currency on Wednesday, on persistent selling of the American currency by exporters. Traders took a note of report that the Reserve Bank of India (RBI) has increased the short-term borrowing capacity of the central government by over 65% to temper market fears that excessive borrowing by the government to fight Covid-19 could put pressure on interest rates. Positive trend in domestic equities and dollar losing shine against major currencies also supported the local unit. On the global front, euro edged higher against dollar on Wednesday as hotspot Italy looked set to relax strict curbs put in place to contain the coronavirus, with investors remaining cautious about a swift recovery as more companies issued worrying financial forecasts.
Finally, the rupee ended at 76.68, 15 paise stronger from its previous close of 76.83 on Tuesday. The currency touched a high and low of 76.88 and 76.63 respectively. The reference rate for the dollar stood at 76.65 and for Euro stood at 83.08 on April 21, 2020. While the reference rate for the Yen stood at 71.31, the reference rate for the Great Britain Pound (GBP) stood at 95.13.
