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Rupee ends lower against dollar on Thursday

11 Jun 2020 Evaluate

Indian rupee ended weaker against the US dollar on Thursday, on increased demand for the greenback from importers and banks. Investors remain concerned as the Organization for Economic Co-operation and Development (OECD) projected that India’s economy will contract 7.3% in the current fiscal year if there is a second wave of the coronavirus (Covid-19) later this year. This is so far the steepest contraction that any agency has predicted for the country. Market participants were also concerned about the impact of spiking coronavirus cases on the economy. Besides, a strong dollar in world markets along with weak trend seen in the domestic equity market exerted pressure on the rupee. On the global front, dollar rose on Thursday from a three-month low which it hit in the previous session, as expectations that the global economy will recover swiftly from the coronavirus pandemic took a beating after a U.S. central bank policy meeting.

Finally, the rupee ended at 75.79, 20 paise weaker from its previous close of 75.59 on Wednesday. The currency touched a high and low of 75.88 and 75.72 respectively. The reference rate for the dollar stood at 75.46 and for Euro stood at 85.70 on June 10, 2020. While the reference rate for the Yen stood at 70.26, the reference rate for the Great Britain Pound (GBP) stood at 96.29.   

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