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Rupee ends weak on dollar demand from importers

14 Aug 2020 Evaluate

Indian rupee ended weaker against dollar on Friday, on emergence of demand for the greenback from importers. Sentiments remained fragile as government data showed retail inflation rose to 6.93 per cent in July, mainly driven by rising prices of food items like vegetables, pulses, meat and fish. The inflation based on the Consumer Price Index (CPI) stood at 3.15 percent in July 2019. Meanwhile, RBI remained net purchaser of the US currency for the second consecutive month in June after it bought $9.814 billion of greenback on a net basis. On the global front, dollar steadied on Friday as a spike in U.S. bond yields and a drag on risk sentiment from lackluster Chinese economic data slowed a sell down of the U.S. currency, which was headed for its longest weekly losing streak since 2010.

Finally, the rupee ended at 74.90, 6 paise weaker from its previous close of 74.84 on Thursday. The currency touched a high and low of 74.93 and 74.74 respectively. The reference rate for the dollar stood at 74.83 and for Euro stood at 88.55 on August 13, 2020. While the reference rate for the Yen stood at 70.17, the reference rate for the Great Britain Pound (GBP) stood at 97.84.

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