Indian rupee ended lower against dollar on Monday on account of buying of American currency by banks and importers. Sentiments were downbeat after reversing two-month buying streak, foreign portfolio investors (FPIs) pulled out Rs 5,156 crore from Indian markets in the first week of March amid profit booking and rising bond yields in the US. According to FPI statistics available with depositories, overseas investors pulled out a net Rs 881 crore from equities and Rs 4,275 crore from the debt segment between March 1-5, taking the total net withdrawals to Rs 5,156 crore. Adding pessimism, RBI data showed that India Inc's overseas direct investment fell by 31 per cent to USD 1.85 billion in February this year. Domestic companies made investments of USD 2.66 billion in their overseas subsidiaries and joint-ventures in the year-ago month, February 2020. On the global front, pound slipped against a strong dollar on Monday, but strengthened against the euro, as the UK's relative success in COVID-19 vaccinations supported the British currency and data showed speculators were the most bullish in three years.
Finally, the rupee ended at 73.25, weaker by 23 paise from its previous close of 73.02 on Friday. The currency touched a high and low of 73.29 and 72.93 respectively. The reference rate for the dollar stood at 72.75, and for Euro stood 86.98 on March 04, 2021. While the reference rate for the Yen stood at 67.27, the reference rate for the Great Britain Pound (GBP) stood at 101.01.
