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Rupee ends lower against dollar

29 Sep 2020 Evaluate

Indian rupee ended lower against dollar on Tuesday, extending previous session losses, on emergence of demand for the greenback from importers. Sentiments were fragile as domestic rating agency ICRA has further revised down its Gross Domestic Product (GDP) estimate for the country and now expects the Indian economy to contract by 11 percent in FY21. The agency, which was earlier estimating a contraction of 9.5 percent, said the revision has been done as the rate of new COVID-19 infections remains elevated. However, downfall were limited as Reserve Bank of India (RBI) has decided to extend by six months the enhanced borrowing facility provided to banks to meet liquidity shortage till March 31, 2021 amid the ongoing economic woes created by the coronavirus pandemic. On the global front; dollar edged up on Tuesday, still close to 2-month highs, as markets awaited the first debate between the U.S. presidential candidates, signs of progress in U.S. fiscal stimulus talks and economic data, including German inflation.

Finally, the rupee ended at 73.85, 6 paise weaker from its previous close of 73.79 on Monday. The currency touched a high and low of 73.91 and 73.75 respectively. The reference rate for the dollar stood at 73.57 and for Euro stood 85.58 on September 28, 2020. While the reference rate for the Yen stood at 69.83, the reference rate for the Great Britain Pound (GBP) stood at 93.94.

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