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Rupee ends lower against greenback

22 Sep 2020 Evaluate

Reversing previous two sessions’ gains, Rupee tumbled against dollar on Tuesday, on account of sustained dollar demand from importers and banks amid heavy selling in domestic equities and strengthening American currency. Sentiments were fragile with CARE Ratings’ multi-sector survey showing that business activity is unlikely to touch pre-COVID-19 levels before March 2021, and there is a need for the government to step in and give a push to the economy as it has not done enough till now. Traders took note of report that markets regulator SEBI permitted foreign portfolio investors (FPI) to write off shares of all the companies which they are unable to sell. As per operational guidelines for FPIs and designated depository participants (DDPs) issued in November 2019, write-off of securities held by FPIs who wished to surrender their registration was permitted only in respect of shares of companies which are unlisted/ illiquid / suspended/ delisted. On the global front; dollar rose on Tuesday to six-week highs, extending gains from the previous session, as markets turned risk-averse over a surge of virus cases and new lockdown measures in Europe.

Finally, the rupee ended at 73.58, 20 paise weaker from its previous close of 73.38 on Monday. The currency touched a high and low of 73.64 and 73.38 respectively. The reference rate for the dollar stood at 73.31 and for Euro stood 86.95 on September 21, 2020. While the reference rate for the Yen stood at 70.29, the reference rate for the Great Britain Pound (GBP) stood at 95.03.

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