Erasing previous sessions’ gains, Indian rupee ended considerably lower against dollar on Monday, on account of sustained dollar demand from importers and banks. Investors’ sentiments were dented as ICRA stated that slackening economic momentum driven by the second wave of Covid-19 infections in India has emerged as a concern with bruised sentiment, high healthcare costs and fuel expenses likely to limit discretionary purchases in the immediate term. Adding more pessimism, overseas investors withdrew Rs 4,444 crore from Indian markets in May so far amid concerns over the second wave of the coronavirus pandemic and its possible impact on the Indian economy. On the global front; dollar was pinned near three-month lows against a basket of major currencies on Monday, as bets on a robust global economic recovery continued to support currencies seen as riskier.
Finally, the rupee ended 72.96, weaker by 13 paise from its previous close of 72.83 on Friday. The currency touched a high and low of 72.98 and 72.86 respectively.
