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Rupee ends weaker on Monday

06 Jul 2020 Evaluate

Indian rupee ended weaker against dollar on Monday due to increased demand for American currency from importers and banks. The sentiments were under pressure with ICRA’s latest report stating that the states' combined market borrowings as state development loans (SDL) have doubled to Rs 1.7 lakh crore during Q1 (April-June) of FY 2020-21 from Rs 0.8 lakh crore in same quarter of the previous fiscal year, on account of expenditure to fight Coronavirus disease (COVID-19) pandemic and lower tax realisation due to multiple lockdown extensions. However, gains in domestic equity markets provided some support to the rupee, keeping the downside in check. On the global front; dollar held steady against most currencies on Monday as investors awaited data expected to show the U.S. services sector stopped contracting, which would further lift hope for an economic recovery from the coronavirus pandemic.

Finally, the rupee ended at 74.68, 2 paise weaker from its previous close of 74.66 on Friday. The currency touched a high and low of 74.82  and 74.52 respectively. The reference rate for the dollar stood at 74.78 and for Euro stood at 84.04 on July 03, 2020. While the reference rate for the Yen stood at 69.56, the reference rate for the Great Britain Pound (GBP) stood at 93.27.

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