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Rupee depreciates against dollar on Wednesday

01 Jul 2020 Evaluate

Indian rupee ended weaker against dollar on Wednesday, on emergence of demand for the greenback from importers. Investors’ sentiment remained fragile as India's core sector growth contracts by 23.4 percent in May 2020 as compared to same period of last year, due to the coronavirus-induced lockdown. Besides, hit by sharp contractions in both output and new orders, Indian manufacturing activity also remained sluggish in the month of June. However, gains in domestic equity markets provided some support to the rupee, keeping the downside in check. On the global front; currency traders were broadly cautious on Wednesday, with the Japanese yen seeing its first session of gains in more than a week, before key European and U.S. economic data.

Finally, the rupee ended at 75.60, 9 paise weaker from its previous close of 75.51 on Tuesday. The currency touched a high and low of 75.60 and 75.48 respectively. The reference rate for the dollar stood at 75.52 and for Euro stood at 84.66 on June 30, 2020. While the reference rate for the Yen stood at 70.15, the reference rate for the Great Britain Pound (GBP) stood at 92.68.

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