Indian rupee ended considerably stronger against dollar on Tuesday due to fresh selling of the American currency by banks and exporters. Signs of recovery in India’s economic growth supported Rupee. India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on consumer demand bouncing back. Adding more optimism, data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed that FDI inflow rose 15 per cent during the April-September period to $30 billion (Rs 2.2 trillion) as compared to inflows of $26 billion during the same period last fiscal, with India being an attractive destination for foreign funds despite the pandemic. Besides, firm domestic equity markets also supported the rupee. On the global front, euro was close to a three-month high as the U.S. dollar on expectations of more monetary stimulus from the United States and a strengthening recovery elsewhere that pushed up riskier currencies.
Finally, the rupee ended at 73.68, 37 paise stronger from its previous close of 74.05 on Friday. The currency touched a high and low of 73.93 and 73.44 respectively. The reference rate for the dollar stood at 73.79, and for Euro stood 88.02 on November 27, 2020. While the reference rate for the Yen stood at 70.97, the reference rate for the Great Britain Pound (GBP) stood at 98.70.
