- RBI’s efforts to handle rupees also have no effect
- Rupee weakened by 6% against dollar in two months
The effect of increased infection of coronavirus is also visible on the currency market. The rupee weakened 84 paise to close at 75.10 against the dollar on Thursday. This is the lowest level of closing ever. During the business hours was slipped to 75.30. Recently, the Reserve Bank of India sold a large amount of dollars to handle the rupee. Despite this, the rupee continues to fall. There are concerns in the currency market about the possible impact of coronavirus on the country’s economy.
The rupee started trading from 74.96
The rupee had started trading at 74.96, a fall of 70 paise. The rupee had closed at 74.26 on Wednesday. Given the growing infection of coronaviruses, agencies such as the World Bank, IMF and OECD have warned of an economic crisis. Economists at prestigious investment banks such as Morgan Stanley and Goldman Sachs have also said that the entire world may be in recession in the June quarter.
Rupee has weakened more than 6% in 2 months
The rupee has weakened 6.07 percent in the month. The rupee had closed at 70.82 against the dollar on 15 January 2020. It touched a low of 75.30 in intra-day trading on Thursday.
Even after the intervention of RBI, the rupee is not stable
After Friday’s fall, the RBI had sold $ 1.5 billion to handle the rupee, which helped the rupee to recover slightly. After this, on Monday, RBI sold more than $ 2 billion US currency. Also, the RBI has announced to sell the dollar further. Despite this, the rupee is not able to stabilize.