Indian rupee tumbled against dollar on Tuesday, on account of sustained dollar demand from importers and banks. Sentiments remained fragile as S&P Global Ratings states that the India’s Gross Domestic Product (GDP) is likely to contract by 9 percent in the current financial year (FY21). Adding pessimism, Asian Development Bank (ADB) in its latest report has predicted that India's economy is likely to contract by 9 per cent this year -- worse than the 4 per cent contraction it had forecast three months ago. However, ADB expects India to bounce back with 8 per cent growth next year as the country begins to emerge from the economic devastation caused by coronavirus (COVID-19) pandemic. On the global front; yuan jumped to its highest in 16 months versus the dollar on Tuesday after Chinese data pointed to an economic recovery after coronavirus-linked shutdowns, while the dollar dipped as risk appetite improved.
Finally, the rupee ended at 73.64, 16 paise weaker from its previous close of 73.48 on Monday. The currency touched a high and low of 73.72 and 73.64 respectively. The reference rate for the dollar stood at 73.38 and for Euro stood 86.93 on September 14, 2020. While the reference rate for the Yen stood at 69.20, the reference rate for the Great Britain Pound (GBP) stood at 94.07.
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