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Rupee ends substantially stronger against dollar

18 Sep 2020 Evaluate

Indian rupee ended substantially stronger against dollar on Friday amid fresh selling of American currency by banks and exporters. Sentiments remained upbeat as investment in the Indian capital market through participatory notes (P-notes) climbed to over Rs 74,000 crore till August-end, making it the highest level in 10 months. This marks the fifth consecutive monthly rise in the investment through the route, also signaling at growing confidence of foreign portfolio investors (FPIs) in the local market. Traders also took note of report that Reserve Bank of India (RBI) will purchase government securities under open market operations (OMOs) for an aggregate amount of Rs 10,000 crore on September 24, 2020.  The securities will be purchased through a multi-security auction using the multiple price method. On the global front; pound edged slightly higher against the euro and the dollar on Friday as data showed that British shoppers continued to increase spending last month, taking sales further above pre-COVID levels.

Finally, the rupee ended at 73.45, 21 paise stronger from its previous close of 73.66 on Thursday. The currency touched a high and low of 73.55 and 73.15 respectively. The reference rate for the dollar stood at 73.70 and for Euro stood 86.76 on September 17, 2020. While the reference rate for the Yen stood at 70.29, the reference rate for the Great Britain Pound (GBP) stood at 95.44.

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