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Indian rupee depreciates against dollar on Wednesday

08 Jul 2020 Evaluate

Declining for the third straight session, Indian rupee depreciated against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Sentiments remained fragile with Reserve Bank of India’s statement that foreign exchange policy has been to only curb extreme volatility but recent actions suggest it is not letting the local unit appreciate despite its relative underperformance versus peers. Some negativity also came with private report that the country’s economy is likely to show a double-digit contraction in the April-June quarter due to the restriction on economic activities on account of the COVID-19 pandemic. On the global front; dollar dipped slightly on Wednesday as investors weighed hopes for a swift economic recovery against fears about resurgence in the pandemic, particularly in the United States.

Finally, the rupee ended at 75.02, 9 paise weaker from its previous close of 74.93 on Tuesday. The currency touched a high and low of 75.05 and 74.87 respectively. The reference rate for the dollar stood at 74.86 and for Euro stood at 84.61 on July 07, 2020. While the reference rate for the Yen stood at 69.60, the reference rate for the Great Britain Pound (GBP) stood at 93.48.

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