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Rupee ends lower against dollar on Friday

02 Jul 2021 Evaluate

Continuing prevision session drubbing, Indian rupee ended significantly weaker against dollar on Friday, on emergence of demand for the greenback from importers. Investors were worried as the Financial Stability Report (FSR) released by the Reserve Bank of India (RBI) said that the gross non-performing assets (GNPAs) ratio of banks may increase to 9.8 percent by March 2022 from 7.48 percent in March 2021 under a baseline scenario. Traders ignored report that Reserve Bank on India’s scheme providing interest subsidy for post and pre-shipment export credit has been extended by three months till September, a move that will provide relief to exporters. Exporters get the subsidy under the ‘Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'. Earlier in April, the scheme was extended till June 30. On the global front, sterling hit fresh two-month lows against the dollar on Friday, pressured in the wake of dovish comments from the Bank of England's governor.

Finally, the rupee ended 74.74, weaker by 19 paise from its previous close of 74.55 on Thursday. The currency touched a high and low of 74.87 and 74.65 respectively.

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