Tumbling for third session in a row; Indian rupee ended lower against dollar on Wednesday, on account of sustained dollar demand from importers and banks. Traders were concerned with Reserve Bank of India’s latest analysis showing that the aggregate sales of private sector manufacturing companies recorded a sharp contraction of 41.1 per cent year-on-year in the first quarter of 2020-21 (Q1FY21), reflecting the impact of the pandemic induced lockdown. However, downfall remain capped as Commerce and Industry Ministry has said that foreign direct investment (FDI) in India has increased by 16 percent to $27.1 billion during April-August period of FY21 as compared to $23.35 billion received in same period last year. It noted that the total FDI, which includes reinvested earnings, grew by 13 percent to $35.73 billion. On the global front, pound rose against the U.S. dollar to a one-week high after the European Union’s Brexit negotiator said that a new trade deal with Britain was ‘within reach’.
Finally, the rupee ended at 73.58, 9 paise weaker from its previous close of 73.49 on Tuesday. The currency touched a high and low of 73.62 and 73.36 respectively. The reference rate for the dollar stood at 73.33 and for Euro stood 86.33 on October 20, 2020. While the reference rate for the Yen stood at 69.50, the reference rate for the Great Britain Pound (GBP) stood at 94.95.
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