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Rupee ends considerably weaker against dollar

24 Sep 2020 Evaluate

Indian rupee ended considerably lower against dollar on Thursday on emergence of demand for the greenback from importers. Selloff in domestic equities, significant foreign fund outflows, feeble global cues coupled with increasing Covid-19 cases also dented the sentiments. A series of warnings from the US central bank officials about a recovery from the coronavirus pandemic hurt investors’ sentiment globally. Sentiments also got hit as Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data has said that the foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to $6.56 billion (Rs 49,820 crore) in first quarter of current financial year (Q1FY21). The overseas inflows during April-June 2019 stood at $16.33 billion. On the global front; dollar reached a two-month high on Thursday as concern grew over the resilience of an economic recovery in the United States and Europe amid a second wave of coronavirus infections.

Finally, the rupee ended at 73.89, 32 paise weaker from its previous close of 73.57 on Wednesday. The currency touched a high and low of 73.96 and 73.75 respectively. The reference rate for the dollar stood at 73.62 and for Euro stood 85.98 on September 23, 2020. While the reference rate for the Yen stood at 70.04, the reference rate for the Great Britain Pound (GBP) stood at 93.42.

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