Reportedly the indian rupee dropped to a record low on friday, weighed down by worries over the coronavirus pandemic that has prompted investors to dump riskier assets and move towards safe havens. The dollar stood tall on friday as investors scrambled for the world's most liquid currency amid deepening panic while the euro nursed losses after the european Central bank disappointed by not cutting rates.
The partially convertible rupee dropped to a record low of 74.5075 against the dollar before recovering slightly to trade at 74.4445 by 0355 GMT. Traders expect the central bank to step in to prevent further sharp falls in the currency but don't see it protecting the rupee at any particular level. Foreign investors remained net sellers in indian capital markets for a fourth straight day, pulling out more than Rs 11,000 crore (USD 1.548 billion) on thursday amid a global sell-off in equities, market data showed.
FPIs have withdrew a whopping Rs 33,163 crore (USD 4.46 billion) from indian capital markets in the current month so far as coronavirus outbreak threatened to derail the global economy.Amid the heavy rush for the US dollar in forex markets, the Reserve bank announced liquidity measures such as buy-sell swap of USD 2 billion to increase dollar availability with banks and ease pressure on rupee.
