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Rupee concludes substantially weaker against dollar

10 Jul 2020 Evaluate

Indian rupee depreciated against dollar on Friday, on account of sustained dollar demand from importers and banks. Sentiments impacted with a private report that India's GDP will contract by 3 percent in FY21 because of the coronavirus pandemic, assuming the economy is opened up fully from next month. It also said the RBI will monetise the fiscal deficit through purchase of government bonds of up to $95 billion through open market operations, and its revaluation reserves of $127 billion may also be used to recapitalise state-run banks. On the global front, dollar paused on Friday as concerns about a surge in coronavirus infections in the United States and elsewhere supported the safe haven Japanese yen, while risk-sensitive currencies lost ground.

Finally, the rupee ended at 75.02, 21 paise weaker from its previous close of 74.99 on Thursday. The currency touched a high and low of 75.33 and 75.12 respectively. The reference rate for the dollar stood at 75.00 and for Euro stood at 85.18 on July 09, 2020. While the reference rate for the Yen stood at 69.95, the reference rate for the Great Britain Pound (GBP) stood at 94.77.

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