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Rupee ends considerably weaker against dollar

14 Jul 2020 Evaluate

Indian rupee tumbled against dollar on Tuesday, on account of sustained dollar demand from importers and banks amid heavy selling in domestic equities and strengthening American currency. Risk appetite also remained weak amid rising tensions between US and China. Besides, investors’ sentiment weakened as Consumer Price Index (CPI), which increased to 6.09% in June 2020, mainly on account of higher prices of food items. The CPI was 3.18% in June 2019. Also, Wholesale Price Index (WPI) - based inflation stood at (-) 1.81% in June due to decline in prices of fuel and power, even as food articles remained expensive. The rate of deflation in May was 3.21%. On the global front, dollar edged up on Tuesday as diplomatic tensions between the United States and China and rising coronavirus cases knocked investor confidence, although moves in currency markets were small in a quiet session.

Finally, the rupee ended at 75.42, 23 paise weaker from its previous close of 75.19 on Monday. The currency touched a high and low of 75.49 and 75.28 respectively. The reference rate for the dollar stood at 75.15 and for Euro stood at 85.12 on July 13, 2020. While the reference rate for the Yen stood at 70.30, the reference rate for the Great Britain Pound (GBP) stood at 95.11.

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