Reportedly India's currency rupee got a fresh shock on thursday as it weakened to Rs 75 per US dollar for the first time ever in the wake of novel coronavirus pandemic. The rupee has weakened almost three per cent this month as stock and bonds continue to be aggressively sold in domestic stock markets. The indian currency was trading at 75.14 against the US Dollar at 12:48 pm.
The rupee had opened at 74.96 in the morning after closing at 74.24 against the US Dollar on Wednesday. A major liquidity situation and surge in outflows from indian markets have pulled down rupee’s valuation. According to experts, entering the 75-mark could be a huge sentimental blow to sentiments. Huge losses have been observed during trade hours for more than two weeks and the situation is unlikely to improve unless uncertainty caused by Covid-19 outbreak around the world fades.
According to market analysts, volatility is expected to continue and could trigger many such selloffs. This could lead to further depreciation of the rupee, more if foreign institutional investors keep pulling out their money from the domestic markets. The scenario is same pretty much in every stock market around the globe, starting from the mighty US Dow Jones to India’s bombay Stock Exchange. This despite a slew of measures announced by top central banks around the world. Some analysts say the next 15-20 days will be crucial for stock markets around the world including India. For now, experts recommend stock and debt investors to stay calm and quarantined.
