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Rupee end lower against dollar on Monday

02 Nov 2020 Evaluate

Continuing previous session drubbing, Indian rupee depreciated significantly against dollar on Monday, on account of sustained dollar demand from importers and banks. Sentiments were impacted amid private report that the pandemic-induced growth contraction and additional spending to support the needy amounting to a little over 2 percent of the economy are likely to push the combined fiscal deficit to 13 percent of GDP this fiscal - nearly double of the past year. Traders ignored report that Indian manufacturing activity continued to improve in the month of October, amid robust sales growth. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - jumped to 58.9 in October as against 56.8 in September. On the global front, dollar held steady on Monday as investors readied for this week’s U.S. presidential election, while a surge in global coronavirus cases continued to weigh on sentiment.

Finally, the rupee ended at 74.42, 32 paise weaker from its previous close of 74.10 on Thursday. The currency touched a high and low of 74.45 and 74.28 respectively. The reference rate for the dollar stood at 73.97 and for Euro stood 86.96 on October 29, 2020. While the reference rate for the Yen stood at 70.87, the reference rate for the Great Britain Pound (GBP) stood at 96.32.

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