Erasing previous session drubbing, Indian rupee ended higher against dollar on Wednesday, on persistent selling of the American currency by exporters. Traders took some solace as the finance ministry said the impending vaccination drive in various countries, coupled with sustained improvement in high frequency indicators, helped the economy perform better in H2FY21. However, upside remain capped as World Bank in its Global Economic Prospects report states that India's economy is estimated to contract by 9.6 per cent in the fiscal year 2020-21 (FY21), reflecting a sharp drop in household spending and private investment. On the global front, pound edged higher for a second consecutive session on Wednesday as the U.S. dollar weakened after Democrats took the lead in runoff votes that will determine control of the U.S. Senate.
Finally, the rupee ended at 73.11, 6 paise stronger from its previous close of 73.17 on Tuesday. The currency touched a high and low of 73.19 and 73.05 respectively. The reference rate for the dollar stood at 73.10, and for Euro stood 89.69 on January 05, 2021. While the reference rate for the Yen stood at 71.03, the reference rate for the Great Britain Pound (GBP) stood at 99.40.
