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Rupee ends higher against dollar on Tuesday

12 May 2020 Evaluate

Indian rupee recovered from its initial losses to end higher against dollar on Tuesday, amid selling in American currency by banks and exporters. Traders took support with Union minister Nitin Gadkari’s statement that he expects the Centre to unveil a financial package in two-three days, observing that the situation was very bad despite the three-month moratorium on loan repayments announced by the RBI. He noted that on March 27, the RBI announced a slew of steps, including a three-month moratorium on loan repayments, as part of measures to alleviate hardships faced by people. However, there was some cautiousness too ahead of industrial production data for March and consumer inflation for April, slated to be announced later in the day. On the global front, U.S. dollar clung to gains on Tuesday on growing fears about a second wave of coronavirus infections and after the Federal Reserve played down the likelihood of negative interest rates, boosting the currency's yield attraction.

Finally, the rupee ended at 75.51, 22 paise stronger from its previous close of 75.73 on Monday. The currency touched a high and low of 75.95 and 75.49 respectively. The reference rate for the dollar stood at 75.68 and for Euro stood at 82.05 on May 11, 2020. While the reference rate for the Yen stood at 70.78, the reference rate for the Great Britain Pound (GBP) stood at 93.98.

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