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Rupee ends considerably lower as RBI keeps repo rate unchanged

07 Apr 2021 Evaluate

Indian rupee ended substantially lower against dollar after the Reserve Bank of India maintained status quo on policy rates for the fifth time in a row. The central bank kept its key policy repo rate unchanged at 4 per cent, but warned that the recent surge in COVID-19 infections has created uncertainty over economic growth recovery. Sentiments were also fragile as India's services sector activities eased in March as growth was hit by the detrimental impact of the coronavirus pandemic and input costs remained elevated. The seasonally-adjusted India Services Business Activity Index fell from 55.3 in February to 54.6 in March. On the global front; pound sank on Wednesday as profit-taking by traders after a strong first quarter for the British currency pulled it to a week's low against the dollar and its lowest in two weeks against the euro.

Finally, the rupee ended 74.47, weaker by 1.05 paise from its previous close of 73.42 on Tuesday. The currency touched a high and low of 74.50 and 73.52 respectively. The reference rate for the dollar stood at 73.50, and for Euro stood 86.09 on March 31, 2021. While the reference rate for the 100 Yen stood at 66.36, the reference rate for the Great Britain Pound (GBP) stood at 100.95.

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