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Rupee depreciates against dollar on Thursday

28 May 2020 Evaluate

Indian rupee ended weaker against US dollar on Thursday, due to fresh demand for the American currency from banks and importers. Investors’ sentiment remained fragile with S&P Global Ratings’ latest report stating that the that Indian economy is expected to contract 5 per cent in the current fiscal year (FY21) as the lockdown imposed to contain COVID-19 pandemic has curtailed economic activity severely. However, gains in domestic equity markets provided some support to the rupee, keeping the downside in check. On the global front, euro continued to rise on Thursday, boosted by a 750 billion euro ($826.35 billion) EU plan to prop up the bloc’s coronavirus-hit economies, though gains were limited as doubts about delivering the scheme crept in.

Finally, the rupee ended at 75.76, 5 paise weaker from its previous close of 75.71 on Wednesday. The currency touched a high and low of 75.90 and 75.69 respectively. The reference rate for the dollar stood at 75.64 and for Euro stood at 81.91 on May 27, 2020. While the reference rate for the Yen stood at 70.34, the reference rate for the Great Britain Pound (GBP) stood at 92.21. 

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