Rising for the second consecutive day, Indian rupee has displayed a stronger trend against dollar on Tuesday, on continued selling of the American currency by exporters and banks. Sentiments remained buoyant with Fitch Ratings’ latest report stating that India is very likely to come out with another round of fiscal stimulus package, worth about 1 percent of Gross Domestic Product (GDP) in the coming months. Fitch, which recently revised India's sovereign rating outlook to 'negative' from 'stable', said it has factored in the outgo for additional fiscal stimulus while deciding on the rating action. Sustained foreign fund inflows, rising domestic equities and easing oil rates lifted investors' confidence in the Indian rupee markets. On the global front, pound rose versus the dollar but was little changed against the euro in early London trading on Tuesday, ahead of UK PMI data for June and the expected announcement of further lockdown easing measures.
Finally, the rupee ended at 75.66, 38 paise stronger from its previous close of 76.03 on Monday. The currency touched a high and low of 75.89 and 75.65 respectively. The reference rate for the dollar stood at 76.06 and for Euro stood at 85.19 on June 22, 2020. While the reference rate for the Yen stood at 71.13, the reference rate for the Great Britain Pound (GBP) stood at 94.20.
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