Indian rupee ended weaker against the US dollar on Monday, on increased demand for the greenback from importers and banks. Traders were concerned despite report that foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 12,266 crore in the Indian market in the first five trading sessions of February, as positive sentiment post-Union Budget 2021 sparked a rally in investment. As per FPI statistics available with depositories, overseas investors pumped in a net Rs 10,793 crore into equities and Rs 1,473 crore in the debt segment between February 1-5. However, healthy growth in the domestic equity market and dollar weakness against other currencies overseas capped the rupee loss. On the global front; dollar steadied against major currencies on Monday as traders waited for more data on the US economy, after a disappointing jobs report last week ended a rally in the greenback. The euro was little changed against the dollar, after data showed German industry avoided a contraction in December.
Finally, the rupee ended at 72.97, 4 paise weaker from its previous close of 72.93 on Friday. The currency touched a high and low of 72.97 and 72.80 respectively. The reference rate for the dollar stood at 72.89, and for Euro stood 87.19 on February 05, 2021. While the reference rate for the Yen stood at 69.07, the reference rate for the Great Britain Pound (GBP) stood at 99.72.
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