Indian rupee depreciated significantly against dollar on Thursday, on account of sustained dollar demand from importers and banks. Traders were concerned as the US Federal Reserve highlighted the uncertainty surrounding economic recovery. US Federal Reserve hinted at the key policy interest rate staying close to zero at least through 2023 without unveiling any additional stimulus plans. Sentiments were also under pressure with private report stating that India’s GDP is likely to contract by 8.6 percent in FY21 as against its earlier prediction of 5.8 percent, citing factors including the modest government response to the crisis for its estimate. On the global front; pound’s recent recovery against a weaker dollar was interrupted on Thursday when the dollar strengthened following the U.S. Federal Reserve meeting, while investors’ attention turned to the Bank of England’s policy meeting.
Finally, the rupee ended at 73.66, 14 paise weaker from its previous close of 73.52 on Wednesday. The currency touched a high and low of 73.78 and 73.64 respectively. The reference rate for the dollar stood at 73.74 and for Euro stood 87.36 on September 16, 2020. While the reference rate for the Yen stood at 70.00, the reference rate for the Great Britain Pound (GBP) stood at 95.07.
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