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Rupee ends stronger against dollar

26 Aug 2020 Evaluate

Indian rupee ended stronger against dollar on Wednesday due to fresh selling of the American currency by banks and exporters. Sentiments were optimistic as Moody's Investors Service said India, China and Indonesia will be the only G-20 emerging economies to post a strong enough pick up of real GDP in the second half of 2020, and retained its projection of 3.1 per cent growth contraction for India in 2020. However, upside remain capped as Reserve Bank of India (RBI) in its latest report stated that the contraction in economic activity is likely to continue in the second quarter of the current fiscal as upticks witnessed in May and June appears to have lost strength following re-imposition of lockdowns to contain the coronavirus pandemic. On the global front; dollar and the euro traded cautiously on Wednesday as investors refrained from taking risky bets a day ahead of a key speech by Federal Reserve Chairman Jerome Powell.

Finally, the rupee ended at 74.30, 3 paise stronger from its previous close of 74.33 on Tuesday. The currency touched a high and low of 74.46 and 74.24 respectively. The reference rate for the dollar stood at 74.39 and for Euro stood at 87.85 on August 25, 2020. While the reference rate for the Yen stood at 70.16, the reference rate for the Great Britain Pound (GBP) stood at 97.45.

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