Erasing all of its initial gains, Indian rupee ended marginally lower against US dollar on Wednesday, due to fresh demand for the American currency from banks and importers. Traders remained cautious as Fitch Ratings forecast a 5% contraction of Indian economy in the current fiscal, on account of slump in economic activities and very stringent lockdown policy. Also, highlighting the grave economic impact of COVID-19, Crisil has said India is staring at its worst recession since Independence. Besides, dollar’s strength against other currencies overseas too weighed on the rupee. On the global front, U.S. dollar edged higher on Wednesday as worries about the U.S. response to China's proposed security law for Hong Kong injected a more cautious tone into foreign exchange markets.
Finally, the rupee ended at 75.71, 5 paise weaker from its previous close of 75.66 on Tuesday. The currency touched a high and low of 75.74 and 75.57 respectively. The reference rate for the dollar stood at 75.64 and for Euro stood at 82.64 on May 26, 2020. While the reference rate for the Yen stood at 70.11, the reference rate for the Great Britain Pound (GBP) stood at 92.60.
