Rupee ended substantially weaker against dollar on Monday on account of continued dollar demand from importers and banks. Sentiments remained fragile with private report stating that Chinese troops 'carried out provocative military movements in Eastern Ladakh to change the status quo' but they were blocked by Indian soldiers. Adding pessimism, anther private report stated that India's fiscal deficit is expected to touch 7 percent of GDP in 2020-21 fiscal as against budget estimate of 3.5 per cent, with revenue collections being hit amid disruptions in economic activities due to lockdowns. Heavy selling in domestic equities also aided the negative trend in the local unit. On the global front; dollar was set for a fourth straight month of losses on Monday after a U.S. Federal Reserve policy shift on inflation, while the euro was poised to post a fourth month of gains, taking both currencies to levels last seen in 2018.
Finally, the rupee ended at 73.60, 21 paise weaker from its previous close of 73.39 on Friday. The currency touched a high and low of 73.80 and 73 .25 respectively. The reference rate for the dollar stood at 73.35 and for Euro stood 87.06 on August 28, 2020. While the reference rate for the Yen stood at 69.03, the reference rate for the Great Britain Pound (GBP) stood at 97.28.
