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Rupee ends substantially stronger against dollar

24 Aug 2020 Evaluate

Indian rupee ended substantially stronger on fresh selling of American currency by banks and exporters, in line with upbeat domestic equities and sustained foreign fund inflows. Besides, weaker American dollar against key global currencies also supported the Indian unit. Sentiments remained upbeat as Ministry of Finance has said that businesses with an annual turnover of up to Rs 40 lakh are Goods and Services Tax (GST) exempt and those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only one percent tax. Meanwhile, investments through participatory notes (P-notes) in the domestic capital market soared to Rs 63,288 crore till July-end. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. On the global front; dollar fell on Monday, riskier currencies gained and European markets opened higher, with the pickup in sentiment to U.S. regulators approving a treatment for COVID-19 patients.

Finally, the rupee ended at 74.32, 52 paise stronger from its previous close of 74.84 on Friday. The currency touched a high and low of 74.91 and 74.31 respectively. The reference rate for the dollar stood at 74.87 and for Euro stood at 88.85 on August 21, 2020. While the reference rate for the Yen stood at 70.90, the reference rate for the Great Britain Pound (GBP) stood at 99.12.

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