Rising for the third consecutive day, Indian rupee ended significantly higher against dollar on Wednesday, on continued selling of the American currency by exporters and banks. Sentiments remained buoyant with private report stating that Finance Minister Nirmala Sitharaman is likely to announce this week a second stimulus for the economy hit by a nationwide lockdown triggered by the coronavirus pandemic, concluding multiple rounds of discussions within the government. The rupee also derived its strength from strong gains in the local equity markets as well as dollar’s weakness against some currencies overseas. Traders overlooked Moody's Investors Service in its report has cut India growth forecast to 0.2 percent, from 2.5 percent projected in March for calendar year 2020. On the global front, dollar weakened broadly against its rivals on Wednesday, nearing a two-week low, as firmer stock markets prompted investors to seek higher-yielding currencies before the outcome of a U.S. Federal Reserve meeting later in the day.
Finally, the rupee ended at 75.66, 52 paise stronger from its previous close of 76.18 on Tuesday. The currency touched a high and low of 75.96 and 75.60 respectively. The reference rate for the dollar stood at 76.37 and for Euro stood at 82.59 on April 28, 2020. While the reference rate for the Yen stood at 71.23, the reference rate for the Great Britain Pound (GBP) stood at 94.77.
