Erasing prevision session losses, Indian Rupee ended fairly higher against US dollar on Monday, on the back of selling of the American currency by exporters. Sentiments were upbeat as foreign portfolio investors (FPIs) remained net buyers for the third month in a row by investing Rs 68,558 crore in December in Indian markets as global investors continued betting on emerging markets. For the equity segment, this is the highest quantum of money invested ever since the FPI data has been made available by the National Securities Depository. Some respite also came as Indian manufacturing sector strengthened in the month of December, with manufacturers stepping up production and input buying amid efforts to rebuild their inventories following business closures earlier in the year. Besides, healthy gains in Indian equity markets also supported the rupee. On the global front; pound weakened versus the euro on Britain’s first day of trading outside the European Union, but strengthened against a softer dollar, climbing above $1.37 for the first time since May 2018, as traders weighed up Brexit relief with COVID-19 risks.
Finally, the rupee ended at 73.02, 9 paise stronger from its previous close of 73.11 on Friday. The currency touched a high and low of 73.03 and 72.90 respectively. The reference rate for the dollar stood at 73.03, and for Euro stood 89.22 on January 01, 2021. While the reference rate for the Yen stood at 70.70, the reference rate for the Great Britain Pound (GBP) stood at 99.80.
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