Reversing previous session losses, Indian rupee ended significantly higher against dollar on Friday, owing to dollar sale by exporters and banks and positive domestic equities. Traders took encouragement with Finance Minister Nirmala Sitharaman’s statement that India's economy will return to growth in 2021-22 and higher spending in the budget due in February will lay the foundations for even stronger growth in the next four to five years. Adding optimism, Finance Ministry in its latest Monthly Economic Review has said that the Indian economy is witnessing a V-shaped recovery as the GDP has recorded a quarter-on-quarter growth of 23 per cent in the July-September quarter of this fiscal. Meanwhile, RBI has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. On the global front; euro was headed for its best week in a month on Friday and has blown past major resistance levels as investors piled into bets the U.S. dollar has further to fall while the world begins to emerge from the COVID-19 pandemic.
Finally, the rupee ended at 73.80, 13 paise stronger from its previous close of 73.93 on Thursday. The currency touched a high and low of 73.81 and 73.70 respectively. The reference rate for the dollar stood at 73.89, and for Euro stood 89.55 on December 03, 2020. While the reference rate for the Yen stood at 70.74, the reference rate for the Great Britain Pound (GBP) stood at 98.93.
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