Erasing previous two sessions drubbing, Indian rupee ended stronger against dollar on Wednesday due to fresh selling of the American currency by banks and exporters. Sentiments were positive with the International Monetary Fund’s (IMF) statement that the global economy has started on a long climb to stronger growth with prospects looking a little better than four months ago. Global economic activity suffered an unprecedented fall in the spring when 85 per cent of the global economy was in lockdown for several weeks. The situation currently is less dire with many countries experiencing a better-than-expected rebound in recent weeks. Besides, healthy gains in the domestic equity markets added to the rupee gains. Meanwhile, RBI’s Monetary Policy Committee meeting, which got postponed last week as the government was in the process of finalising the new external members, is now scheduled to deliver its decision on 9th October. On the global front; dollar steadied on Wednesday, ticking down against most currencies after an initial jump triggered by U.S. President Donald Trump cancelling stimulus talks with Democrat lawmakers, a move which increased demand for safe-haven assets.
Finally, the rupee ended at 73.33, 13 paise stronger from its previous close of 73.46 on Tuesday. The currency touched a high and low of 73.55 and 73.29 respectively. The reference rate for the dollar stood at 73.36 and for Euro stood 86.43 on October 06, 2020. While the reference rate for the Yen stood at 69.43, the reference rate for the Great Britain Pound (GBP) stood at 95.27.
