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Indian rupee ends lower against greenback

27 Nov 2020 Evaluate

Erasing previous sessions gaining momentum; Indian rupee ended lower against dollar on Friday, on account of sustained dollar demand from importers and banks. Investors’ sentiment were dented amid SBI Research in its latest report has stated that India’s GDP likely contracted 10.7% in the second quarter, with a further recovery likely in the third quarter, citing improvements in economic indicators over October and November. Traders shrugged off SBI Ecowrap’s latest report stating that the Goods and Services Tax (GST) collections are likely to be 10-month high of Rs 1.08 lakh crore in November as compared to Rs 1.05 lakh crore in October 2020. According to the report, the November 2020 collections will be very close to January 2020 collections (Rs 1.10 lakh crore). It said that the continued improvement in GST is mainly due to traction in economic activities and services in festive month of November. On the global front; dollar fell on Friday and was on track for a weekly loss against a basket of currencies, even as the equity market rally ran out of steam as sentiment was hurt by doubts about AstraZeneca’s COVID-19 vaccine.

Finally, the rupee ended at 74.05, 17 paise weaker from its previous close of 73.88 on Thursday. The currency touched a high and low of 74.07 and 73.76 respectively. The reference rate for the dollar stood at 73.82, and for Euro stood 88.08 on November 26, 2020. While the reference rate for the Yen stood at 70.75, the reference rate for the Great Britain Pound (GBP) stood at 98.86.

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