Rising for second straight session, Indian rupee strengthened substantially against dollar on Tuesday, owing to dollar sale by exporters and banks. Sustained foreign fund inflow and strong gains in equity market supported the rupee. Traders shrugged off State Bank of India's (SBI) research report Ecowrap witch stated that India’s Gross Domestic Product (GDP) is likely to contract by 16.5 percent in Q1 (April-June) of 2020-21, as the current Covid-19 pandemic is spreading at a much faster rate after the opening up of the economy. On the global front; pound rose on Tuesday, approaching a five-month high, driven by a weaker dollar. The dollar index hit new lows on Tuesday, facing the triple woes of diminishing yields, weak U.S. economic data and a lessening of demand for safe havens.
Finally, the rupee ended at 74.76, 12 paise stronger from its previous close of 74.88 on Monday. The currency touched a high and low of 74.89 and 74.73 respectively. The reference rate for the dollar stood at 74.84 and for Euro stood at 88.79 on August 17, 2020. While the reference rate for the Yen stood at 70.26, the reference rate for the Great Britain Pound (GBP) stood at 98.07.
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