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Rupee ends lower against greenback

06 Oct 2020 Evaluate

Indian rupee concluded substantially weaker against dollar on Tuesday, extending its previous session's loss, on account of continued dollar demand from importers and banks. Sentiments remained Weak  despite India’s service sector activity stabilized in the month of September, with the relaxation of coronavirus pandemic 2019 (COVID-19) restrictions. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 49.8 in September from 41.8 in August. Meanwhile, RBI in its latest report on 'Data on ECB/FCCB for the month of August 2020' has showed that foreign borrowings of India Inc fell by over 47 per cent in August 2020 to $1.75 billion as compared to $3.32 billion borrowed from overseas markets in August 2019, by way of external commercial borrowings (ECBs). On the global front; Sterling climbed above $1.30 on Tuesday for the first time in three weeks as investors pushed back expectations for when the Bank of England would cut interest rates below zero.

Finally, the rupee ended at 73.46, 17 paise weaker from its previous close of 73.29 on Monday. The currency touched a high and low of 73.51 and 73.15 respectively. The reference rate for the dollar stood at 73.26 and for Euro stood 85.90 on October 05, 2020. While the reference rate for the Yen stood at 69.38, the reference rate for the Great Britain Pound (GBP) stood at 94.69.

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