Continuing previous session losses, Indian rupee depreciated against dollar on Friday as rebound in the US dollar and downfall in domestic equities weighed on investor sentiment. Traders shrugged off report of the commerce and industry ministry’s latest data stating that that Foreign direct investment (FDI) in India grew 40 percent to $51.47 billion during April-December 2020-21 as against $36.77 billion in the same period of 2019-20. Adding pessimism, treasury yields spiked in reaction to the latest comments from Federal Reserve Chair Jerome Powell that he expects some inflationary pressures in the time ahead. On the global front, pound lost ground against a resurgent dollar on Friday, as currency traders took some risk off the table amid rising U.S. bond yields.
Finally, the rupee ended at 73.02, 19 paise weaker from its previous close of 72.83 on Thursday. The currency touched a high and low of 73.09 and 72.73 respectively. The reference rate for the dollar stood at 72.71, and for Euro stood 87.68 on March 04, 2021. While the reference rate for the Yen stood at 67.88, the reference rate for the Great Britain Pound (GBP) stood at 101.47.