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Rupee ends on weak note on Monday

15 Jun 2020 Evaluate

Indian rupee ended on weak note against US dollar on Monday, as weak domestic equities and sustained foreign fund outflows weighed on investors' sentiment. Traders remained wary as the government has not released the headline IIP growth for April, Consumer Price Inflation (CPI) for May saying that it is not appropriate to compare these readings with the previous months. The March IIP reading has been revised further lower to -18.3 percent versus -16.7 percent said earlier. Besides, it said the May CPI combined food price index is at 9.28 percent and risen up 0.1 percent versus the April reading. Some pessimism also came with private report stated that with the protracted lockdown pushing the Indian economy into deep recession in the current fiscal, the escalating new COVID-19 cases after easing of restrictions poses further downside risks to the economic outlook. On the global front, dollar rose and commodity currencies fell as a 'risk-off' sentiment dominated markets, driven in part by fears of a second wave of COVID-19 infections after new cases were recorded in Beijing and U.S. numbers spiked over the weekend.

Finally, the rupee ended at 76.03, 19 paise weaker from its previous close of 75.84 on Friday. The currency touched a high and low of 76.15 and 75.93 respectively. The reference rate for the dollar stood at 75.97 and for Euro stood at 85.86 on June 12, 2020. While the reference rate for the Yen stood at 70.89, the reference rate for the Great Britain Pound (GBP) stood at 95.56.   

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