Indian rupee pared all of its early gains and ended almost flat against dollar on Friday, as rising coronavirus cases in the country weighed on investors sentiment. Traders remained cautious with surveys released by the Reserve Bank showing that consumer confidence has collapsed amid the coronavirus pandemic and it may result in contraction of the economy by 1.5 per cent during 2020-21. Some concern also came as the Confederation of Indian Industry (CII) in its agenda document 2020-21 has sounded a note of caution saying that the government should guard against increasing fiscal deficit that may prompt rating downgrade resulting in other consequences for the economy. However, positive domestic stock market supported the rupee to some extent. On the global front, pound rose to a new three-month high against the dollar on Friday due to the Bank of England playing down the prospect of negative rates soon, and dollar weakness.
Finally, the rupee ended at 75.58, 1 paise weaker from its previous close of 75.57 on Thursday. The currency touched a high and low of 75.58 and 75.38 respectively. The reference rate for the dollar stood at 75.52 and for Euro stood at 84.63 on June 4, 2020. While the reference rate for the Yen stood at 69.22, the reference rate for the Great Britain Pound (GBP) stood at 94.65.
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