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Rupee strengthens against US dollar on strong domestic equities

24 Nov 2020 Evaluate

Indian rupee strengthened against the US dollar on Tuesday, tracking strong domestic equities on the back of the progress made on the Covid-19 vaccine and the prospects for a speedy global economic revival. British drug maker AstraZeneca said an interim analysis of clinical trials of its Covid-19 vaccine showed 70 percent efficacy on average, becoming the third drug maker to announce promising results to contain the deadly virus. Moreover, weak American currency overseas and Foreign Fund Inflows into the domestic equity markets also supported the rupee. Foreign Institutional Investors bought shares worth Rs 4,738.44 crore on a net basis on Monday, exchange data showed.

The partially convertible currency is currently trading at 73.96, stronger by 15 paise from its previous close of 74.11 on Monday. The currency touched a high and low of 74.12 and 73.88 respectively. The reference rate for the dollar stood at 74.15, and for Euro stood 88.15 on November 20, 2020. While the reference rate for the Yen stood at 71.47, the reference rate for the Great Britain Pound (GBP) stood at 98.49. 

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