Indian rupee tumbled against dollar on Thursday, on account of sustained dollar demand from importers and banks amid selling pressure in domestic equities. Sentiments remained fragile with Reserve Bank of India (RBI) official’s statement that the country’s GDP is likely to contract by 8.6 percent for second quarter of current financial year (Q2FY21), which means India will enter into a recession for the first time in history in the first half of this fiscal with two successive quarters of negative growth due to the COVID-19 pandemic. Meanwhile, the government has set up a 22-member inter-ministerial committee in strengthening the Capital Goods (CG) Sector through interventions that help the CG Sector in contributing more actively in the national goal of achieving a $5 trillion economy and a $1 trillion manufacturing sector. On the global front, dollar steadied on Thursday as investors tempered bullish expectations about a COVID-19 vaccine that is unlikely to avert a grim winter in Europe and the United States as the pandemic’s second wave intensifies.
Finally, the rupee ended at 74.64, 28 paise weaker from its previous close of 74.36 on Wednesday. The currency touched a high and low of 74.74 and 74.38 respectively. The reference rate for the dollar stood at 74.25, and for Euro stood 87.77 on November 11, 2020. While the reference rate for the Yen stood at 71.50, the reference rate for the Great Britain Pound (GBP) stood at 98.43.
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