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Rupee tumbles for second straight session

08 Sep 2020 Evaluate

Indian rupee ended significantly lower against dollar on Tuesday, on increased demand for the greenback from importers and banks. This is the second consecutive session when the rupee was traded lower against dollar. Sentiments remained fragile as Domestic rating agency, India Ratings and Research (Ind-Ra) in its latest report has revised its FY21 gross domestic product (GDP) growth forecast further downward to negative 11.8% from negative 5.3% earlier. However, the rating agency said that GDP is expected to rebound and grow at 9.9% year-on-year in FY22 mainly due to the weak base of FY21. On the global front; pound sank to two-week lows against the dollar on Tuesday, extending losses as fears grew that Britain is preparing to undercut its Brexit divorce treaty and potentially torpedo its trade talks with the European Union.

Finally, the rupee ended at 73.60, 25 paise weaker from its previous close of 73.35 on Monday. The currency touched a high and low of 73.64 and 73 .37 respectively. The reference rate for the dollar stood at 73.28 and for Euro stood 86.69 on September 07, 2020. While the reference rate for the Yen stood at 68.95, the reference rate for the Great Britain Pound (GBP) stood at 96.84.

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