Indian rupee gained ground against dollar and ended higher on Tuesday, on persistent selling of the American currency by exporters. Traders took encouragement with Niti Aayog Vice Chairman Rajiv Kumar’s statement that there is a need to convert development into mass movement, and India should aspire to become second or third largest economy in the world by 2047. Traders overlooked credit rating agency, India Ratings and Research’s (Ind-Ra) report that the aggregate fiscal deficit of states is expected to now rise to 4.5 per cent of gross domestic product (GDP) in FY21 as against the agency's earlier forecast of 3 per cent. On the global front, dollar inched lower on Tuesday as growing optimism about a global recovery from the COVID-19 pandemic supported riskier currencies, though concerns about Sino-U.S. tensions held further moves in check.
Finally, the rupee ended at 75.66, 29 paise stronger from its previous close of 75.95 on Friday. The currency touched a high and low of 75.74 and 75.62 respectively. The reference rate for the dollar stood at 75.78 and for Euro stood at 82.81 on May 22, 2020. While the reference rate for the Yen stood at 70.55, the reference rate for the Great Britain Pound (GBP) stood at 92.49.
