Indian rupee ended marginally higher against dollar on Friday, on persistent selling of the American currency by exporters. Traders remained positive as ICRA pegged the contraction in the economy at 7.8 per cent for 2020-21. Before the GDP numbers for Q2 were out, it had predicted the fall in the economy at 11 per cent. It said improving economic fundamentals, a bright outlook for the rabi season, and the visibility of vaccine availability are expected to strengthen demand. Traders took note of Finance minister Nirmala Sitharaman’s statement that strong decisions taken by the Modi government have ensured steady flow of foreign direct investment (FDI) into the country which is far greater than what comparable economies have attracted during the pandemic. On the global front; pound fell on Friday, reversing some of its recent gains, as EU chief negotiator Michel Barnier warned that there were just hours left to reach a Brexit trade deal with London.
Finally, the rupee ended at 73.56, 3 paise stronger from its previous close of 73.59 on Thursday. The currency touched a high and low of 73.57 and 73.49 respectively. The reference rate for the dollar stood at 73.43, and for Euro stood 89.78 on December 17, 2020. While the reference rate for the Yen stood at 71.07, the reference rate for the Great Britain Pound (GBP) stood at 99.54.
