Rupee slides to around 77 per US dollar
The heavy selling by foreign portfolio investors in the capital market has led to the Indian Rupee plunging to a record low of 76.92 against the US dollar, before settling at 76.67. What helped Indian Rupee recover during the day was a rally in domestic equities after a volatile start and the US dollar paring gains against other currencies.
Investors fled riskier assets for the world’s most liquid currency, contributing to the robustness of the American dollar. “Given the uncertainty surrounding the potential duration of the outbreak and the lockdown, we believe the RBI is unlikely to attempt a hard intervention that would risk quick depletion of its reserves,” observed Abhishek Gupta, India economist at Bloomberg.