Indian rupee ended weaker against the US dollar on Monday, on increased demand for the greenback from importers and banks. Investors remain concerned with Former chief economist of World Bank -- Kaushik Basu’s statement that India needs a large fiscal stimulus as the country faces big risk of slowdown in the economic growth on account of COVID-19. Basu suggested that the government may need monetisation by the Reserve Bank of India. Market participants were also concerned about the impact of spiking coronavirus cases on the economy. However, losses remain capped as some support came with report that the government is working on several initiatives, such as preparation of huge land pools, to attract potential investors to India amid the coronavirus-triggered turbulence. On the global front, dollar rose against most of its major peers on Monday as moves by the United States and other countries to re-open their economies raised hopes for a quicker global recovery from a deep recession triggered by the coronavirus health crisis.
Finally, the rupee ended at 75.73, 19 paise weaker from its previous close of 75.54 on Friday. The currency touched a high and low of 75.77 and 75.55 respectively. The reference rate for the dollar stood at 75.44 and for Euro stood at 81.79 on May 8, 2020. While the reference rate for the Yen stood at 70.93, the reference rate for the Great Britain Pound (GBP) stood at 93.49.
