Rising for the second consecutive day, Indian rupee ended higher against dollar on Tuesday, on easing crude oil prices and a weak dollar in overseas markets. Sentiments remained buoyant despite India Ratings and Research’s (Ind-Ra) latest report stated that the gross state domestic product (GSDP) of all states in India is likely to contract in the range of 1.4 to 14.3 percent in the current financial year (FY21) due to the impact of Covid-19-induced lockdown on economic activities. Market participants also remained cautious and awaited for more clarity on the ongoing tension between India and China. Meanwhile, investors will also keenly looking forward for the government's guidelines for second phase of Unlock and PM Narendra Modi's address to the nation at 4 pm. On the global front; pound retreated against a broadly firmer dollar on Tuesday, as investors awaited confirmation of the government’s spending plans to lift an economy that posted its biggest contraction in 40 years in early-2020.
Finally, the rupee ended at 75.51, 7 paise stronger from its previous close of 75.58 on Monday. The currency touched a high and low of 75.58 and 75.45 respectively. The reference rate for the dollar stood at 75.56 and for Euro stood at 85.11 on June 29, 2020. While the reference rate for the Yen stood at 70.57, the reference rate for the Great Britain Pound (GBP) stood at 93.58.
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