Indian rupee ended considerably weaker against U.S. dollar on Monday, due to fresh demand for the American currency from banks and importers. Traders were concerned with the commerce and industry ministry’s data showing that India’s exports contracted by a record 60.28 per cent to $10.36 billion in April amid the coronavirus lockdown. Imports too tumbled by 58.65 per cent to $17.12 billion in April from $41.4 billion in the same month last year. Market participants also concerned about the effectiveness of the fiscal stimulus package and the impact of extended nationwide lockdown amid a significant rise in COVID-19 cases on the domestic economy. Stronger dollar against key global currencies and subdued equity market too put pressure on the domestic unit. On the global front, dollar held its ground on Monday as concern about global tensions with China overshadowed improving sentiment from easing coronavirus lockdowns, while talk of negative interest rates pushed the pound to an almost two-month low.
Finally, the rupee ended at 75.91, 33 paise weaker from its previous close of 75.58 on Friday. The currency touched a high and low of 75.96 and 75.83 respectively. The reference rate for the dollar stood at 75.56 and for Euro stood at 81.65 on May 15, 2020. While the reference rate for the Yen stood at 70.48, the reference rate for the Great Britain Pound (GBP) stood at 92.26.
