Indian rupee ends lower against dollar on Thursday on emergence of demand for the greenback from importers. Besides, losses in local equity market also hit the rupee sentiment. Traders mood were dented on increasing risk arising from rising covid-19 infections in India in the context of a third wave in parts of Europe. Investors’ took note of report in which Reserve Bank of India Governor Shaktikanta Das provided a glimpse of the challenges the central bank has been facing in creating the digital version of the rupee, and the implications it may have for financial stability going ahead. The government has proposed a bill that will allow the central bank to create its own central bank digital currency (CBDC), while banning all private cryptocurrencies like Bitcoin and Ethereum. On the global front, dollar edged up as European markets opened on Thursday, having hit a four-month high against the euro during the Asian session, as market participants focused on divergent recovery outlooks for the United States and Europe, and risk appetite waned.
Finally, the rupee ended 72.62, weaker by 7 paise from its previous close of 72.55 on Wednesday. The currency touched a high and low of 72.68 and 72.58 respectively. The reference rate for the dollar stood at 72.65, and for Euro stood 86.02 on March 24, 2021. While the reference rate for the Yen stood at 66.96, the reference rate for the Great Britain Pound (GBP) stood at 99.61.
