Indian rupee ended weaker against the US dollar on Wednesday, on increased demand for the greenback from importers and banks. Traders remain concerned as ICRA in its latest report has said that debt resolution through the insolvency and bankruptcy code (IBC) and the resultant realisation for financial creditors has taken a hit so far this fiscal due to the pandemic that led to suspension of fresh proceedings. Besides, losses in the local equity markets also dampened the sentiments. However, downfall remained capped as The Organization for Economic Co-operation and Development has raised prospects of India’s economy by pegging contraction at 9.9%, against 10.2% it projected in September for the current financial year (FY21). On the global front; dollar rose from a two-and-a-half-year low on Wednesday as investors assessed the likelihood of further fiscal stimulus in the United States, while a rally in riskier currencies lost steam.
Finally, the rupee ended at 73.81, 13 paise weaker from its previous close of 73.68 on Tuesday. The currency touched a high and low of 73.82 and 73.42 respectively. The reference rate for the dollar stood at 73.50, and for Euro stood 87.90 on December 01, 2020. While the reference rate for the Yen stood at 70.44, the reference rate for the Great Britain Pound (GBP) stood at 98.24.
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