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Rupee ends tad weaker against greenback

25 Aug 2020 Evaluate

Indian rupee ended tad lower against dollar on Tuesday, on account of dollar demand from importers and banks. However, downfall remained capped as ratings agency Crisil expects India’s retail food inflation, measured through the Consumer Price Index (CPI), to ease in the second half of this financial year. It added that the key risk to this forecast remains the rate of spread of Covid-19 in rural areas, which may adversely impact the harvest and the supply chain, pushing up retail food prices. Meanwhile, the government is considering a proposal to permit foreign direct investment (FDI) in limited liability partnership firms engaged in construction development. On the global market, dollar fell and the Australian dollar and Chinese yuan rose after the United States and China both hailed a phone call between their senior trade officials as a success.

Finally, the rupee ended at 74.33, 1 paise weaker from its previous close of 74.32 on Monday. The currency touched a high and low of 74.51 and 74.17 respectively. The reference rate for the dollar stood at 74.82 and for Euro stood at 88.29 on August 24, 2020. While the reference rate for the Yen stood at 70.70, the reference rate for the Great Britain Pound (GBP) stood at 98.05.

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