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Rupee settles lower against dollar on Monday
Mar-01-2021

Continuing previous session losses, Indian rupee ended lower against dollar on Monday weighed down by significant foreign fund outflows and rising crude oil prices. Traders were worried despite report that as India is now out of a technical recession after witnessing two successive quarters of revised negative growth at 7.3% in the July-September period and a 24.4% decline in the first quarter of the financial year 2020-21 (FY21). India's Q3 GDP grew by 0.4% after witnessing a negative growth of 7.5% and 23.9% in Q2 and Q1 respectively of FY21 as economic activity limps back to normality after Covid-19 pandemic shock. Meanwhile, Indian equities continued to scale new highs post the Union Budget for FY22, the net foreign portfolio investments (FPI) into the Indian equities in February was Rs 25,787 crore. On the global front; sterling edged higher against both the euro and the dollar on Monday as a swift coronavirus vaccine roll out supported the pound and fuelled hopes of economic recovery.

Finally, the rupee ended at 73.55, 8 paise weaker from its previous close of 73.47 on Friday. The currency touched a high and low of 73.76 and 72.19 respectively. The reference rate for the dollar stood at 72.04, and for Euro stood 88.79 on February 26, 2021. While the reference rate for the Yen stood at 68.78, the reference rate for the Great Britain Pound (GBP) stood at 101.89.

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