Indian rupee ended higher against dollar on Monday as banks and exporters continued to sell the US currency amid persistent capital inflows. Sentiments were positive with private report that the landmark post-Brexit trade deal between the EU and the UK brightens the prospects of a free trade agreement (FTA) between New Delhi and London. Traders also took support as India Ratings has revised its projections for economic contraction to 7.8 per cent for current fiscal (FY21) from the earlier expectation of 11.8 per cent due to easing Covid-19 headwinds and better than expected numbers in the second quarter of the current financial year. Meanwhile, foreign portfolio investors (FPI) have pumped in a net Rs 60,094 crore into Indian markets in December so far amidst optimism in the global markets. On the global front; dollar largely shrugged off President Donald Trump’s decision to relent on a threat to block a COVID-19 aid bill in thin trading on Monday with many investors on holiday.
Finally, the rupee ended at 73.49, 6 paise stronger from its previous close of 73.55 on Thursday. The currency touched a high and low of 73.61 and 73.47 respectively. The reference rate for the dollar stood at 73.58, and for Euro stood 89.80 on December 24, 2020. While the reference rate for the Yen stood at 71.05, the reference rate for the Great Britain Pound (GBP) stood at 99.75.
