Indian rupee ended stronger against dollar on Wednesday due to fresh selling of the American currency by banks and exporters. Sentiments were optimistic as Reserve Bank of India (RBI) has proposed allowing foreign portfolio investors (FPIs) to undertake exchange-traded rupee Interest Rate Derivatives (IRD) transactions subject to an overall ceiling of Rs 5,000 crore. The proposed Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2020 are aimed at encouraging higher non-resident participation, enhance the role of domestic market makers in the offshore market, improve transparency, and achieve better regulatory oversight. However, upside remained capped as contracting for the sixth straight month, India's exports slipped 12.66 per cent to $22.7 billion in August, on account of decline in the shipments of petroleum, leather, engineering goods and gems and jewellery items. On the global front; pound held within striking distance of a two-month low on Wednesday before a Bank of England decision on Thursday against the backdrop of a darkening outlook for the economy.
Finally, the rupee ended at 73.52, 12 paise stronger from its previous close of 73.64 on Tuesday. The currency touched a high and low of 73.78 and 73.48 respectively. The reference rate for the dollar stood at 73.41 and for Euro stood 87.31 on September 15, 2020. While the reference rate for the Yen stood at 69.49, the reference rate for the Great Britain Pound (GBP) stood at 94.43.
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