Tumbling for second straight session, Rupee ended substantially weaker against dollar on Thursday on account of continued dollar demand from importers and banks. Sentiments remained fragile with the World Bank’s report stating that it is likely to project a steeper contraction in India’s economy than the 3.2 per cent it had forecast for the current financial year, given the rising number of Covid-19 cases and the resultant regional lockdowns. Traders were also worried as Care Ratings stated that India’s GDP is likely to contract by 20 per cent during the first quarter of the current fiscal on account of the COVID-19 pandemic-induced disruptions. On the global front; dollar rose on Thursday, pulling away from a two-year trough after less dovish than expected minutes from last month’s U.S. Federal Reserve meeting prompted bears to buy into the heavily shorted currency in its biggest one-day surge since June.
Finally, the rupee ended at 75.02, 20 paise weaker from its previous close of 74.82 on Wednesday. The currency touched a high and low of 75.05 and 74.93 respectively. The reference rate for the dollar stood at 74.76 and for Euro stood at 89.28 on August 19, 2020. While the reference rate for the Yen stood at 70.86, the reference rate for the Great Britain Pound (GBP) stood at 99.13.
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