Continuing previous session drubbing, Indian rupee tumbled against dollar on Friday, on account of sustained dollar demand from importers and banks. Traders were worried with ICRA Ratings’ report that an unabated increase in the COVID cases is likely to bring about fears of harsher lockdowns, which could impact the asset quality of retail loans especially for unsecured loans such as in the microfinance sector. It said this, in turn, would impact the fund-raising ability of the NBFCs and HFCs through securitisation of their assets. Downfall in the Indian equity markets also impacted sentiments. On the global front, dollar recovered slightly on Friday but was still heading for its softest week of the year after surprisingly weak U.S. jobs figures the previous day and ongoing loose Federal Reserve policy prompted investors to trim their bets.
Finally, the rupee ended 74.73, weaker by 15 paise from its previous close of 74.58 on Thursday. The currency touched a high and low of 74.96 and 74.53 respectively.
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