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Rupee ends tad higher against greenback
Nov-26-2020

Indian rupee ended tad higher against dollar on Thursday as banks and exporters continued to sell the US currency amid persistent capital inflows. This is the fifth consecutive session when the rupee is traded higher against dollar. Traders took some support with private report stating that the Indian economy is likely to have improved in the second quarter with GDP printing in at -7.8 percent as against 24 percent contraction in the June quarter. However, upside remain capped with the Reserve Bank of India’s (RBI) report 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), September 2020' - indicating that bank credit growth decelerated to 5.8 percent in Q2 (July- September) of FY21 from 8.9 percent in the year-ago period. On the global front; dollar was on the defensive on Thursday as downbeat U.S. economic data and optimism about coronavirus vaccines prompted investors to seek out riskier assets tied to global commodities and emerging markets.

Finally, the rupee ended at 73.88, 3 paise stronger from its previous close of 73.91 on Wednesday. The currency touched a high and low of 73.89 and 73.75 respectively. The reference rate for the dollar stood at 73.97, and for Euro stood 87.99 on November 25, 2020. While the reference rate for the Yen stood at 70.77, the reference rate for the Great Britain Pound (GBP) stood at 98.69.

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