Indian rupee depreciated against dollar on Monday, as government estimates fiscal deficit of 6.8 per cent of the gross domestic product (GDP) in the next financial year beginning April 1. The fiscal deficit in 2020-21 is estimated to soar up to 9.5 per cent due to rise in expenditure on account of the outbreak of COVID-19 and moderation in revenue during this fiscal year. Traders were concerned as the growth of eight core infrastructure industries contracted for the tenth month in a row by 1.3 percent in December 2020 as compared to same period of last year, dragged down by poor show by crude oil, natural gas, refinery products, fertiliser, steel and cement sectors. However, downfall remain capped as Indian manufacturing industry started 2021 with strong growth, as sustained sales growth supported a further upturn in manufacturing sector output in January. On the global front; pound rose back towards its recent three-year high on Monday, boosted by a combination of heightened global risk appetite and optimism about the UK's vaccine rollout.
Finally, the rupee ended at 73.02, 6 paise weaker from its previous close of 72.96 on Friday. The currency touched a high and low of 73.15 and 72.84 respectively. The reference rate for the dollar stood at 72.95, and for Euro stood 88.30 on January 29, 2021. While the reference rate for the Yen stood at 69.82, the reference rate for the Great Britain Pound (GBP) stood at 100.01.
