Rupee Drops Below 76 Mark Against Dollar Amid Coronavirus Crisis

Business

[ad_1]

Rupee Drops Below 76 Mark Against Dollar Amid Coronavirus Crisis

Rupee Vs Dollar: The rupee is down nearly 6% against the greenback so far this year

Resuming trade after two holidays, the rupee slid below the 76 mark against the dollar on Friday as the country entered the tenth day of a 21-day lockdown to curb the spread of the coronavirus pandemic. The rupee declined by as much as 48 paise – or 0.63 per cent – against the greenback in morning deals after starting the day at 75.97. Analysts say the rupee is expected to continue to trade under pressure as the increasing number of coronavirus (COVID-19) haunts financial markets the world over.

Here are 10 things to know about the impact of coronavirus on markets:

  1. After starting the session 0.49 per cent (37 paise) lower at 75.97, the rupee weakened to as low as to 76.08 in the first half of the day. 

  2. Weakness in domestic equity markets also put pressure on the rupee, as benchmark indices S&P BSE Sensex and NSE Nifty dropped more than 1 per cent amid volatile trade following a positive opening.

  3. The domestic forex markets remained closed on the first two days of the month on account of the annual closing of banks and Ram Navami holidays respectively. 

  4. While there are more than one million declared cases of coronavirus worldwide, in India, the tally of confirmed cases has crossed the 2,000 mark.

  5. The dollar index, which gauges the greenback”s strength against a basket of six currencies, rose by 0.03 per cent to 100.20. 

  6. Analysts say the rupee is likely to stay weak along with other emerging market currencies until the coronavirus pandemic subsides. Its path will largely depend on how successful the government’s steps are in containing the spread of COVID-19.

  7. After giving up over 7 per cent since the start of the year, the rupee fell to a record low of 76.42 to the dollar on March 25.

  8. According to a poll of market strategists and analysts by news agency Reuters, the rupee would strengthen 3.1 per cent to 74.00 against the dollar in a year. It is forecast to trade at 75.55 per dollar by the end of April.

  9. Analysts say Reserve Bank of India interventions have prevented the rupee from falling further.

  10. The RBI cut interest rates on March 27 by 75 basis points – its biggest cut since 2009 – to 4.40 per cent, following 135 basis points of cuts in 2019. The RBI also announced targeted long-term refinancing operations to ensure market liquidity.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *