Coronavirus impact: Rupee touches record low, cracks below 76 per dollar1 min read . Updated: 23 Mar 2020, 09:48 AM IST
- Resistance is seen at 74.50 while the immediate hurdle is pegged at 76.20
- In India, Covid-19 cases have surged to 390, including six deaths
MUMBAI: The Indian rupee on Monday slumped past the 76 per dollar-mark as nervous investors dumped risky assets following the relentless rise in cases of Covid-19 in the country and world over.
At 9:15am, the rupee traded at 76.15 a dollar, down 1.25% from its previous close. The yield on the government 10-year bond gained 5 basis points to 6.308%.
Domestic benchmark equity indices--Sensex and Nifty--fell nearly 9% each in early deals.
Globally, the number of positive cases stand at 336,000, with death toll at 14,641. In India, cases have surged to 390, including six deaths.
Several states have announced lockdown measures to contain the spread of the viorus, with daily life and activities at a standstill. Workplaces and public transport are working at minimum capacities and only essential services have been allowed to function.
“We believe that this can have a very sharp impact on the GDP print not only in the current quarter but also in the next quarter Q1FY21. The largest impact will be in the services sector particularly travel, transport and hospitality while there will be a secondary impact on other services and manufacturing sector due to the large scale disruption", said an analyst on condition of anonymity.
The lockdown measures will weaken the economy further, with growth set to slow to an 11-year low. The reserve Bank of India, due to decide on interest rates on 3 April, has been injecting both rupee- and dollar-liquidity and has pledged to do more to ensure financial markets function smoothly.
Foreign investors also stepped up selling, hitting sentiment. So far this year, foreign investors have sold nearly $11 billion in equity and debt markets.
According to Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking, sentiment in the market is shaky and domestic currency is likely to face more heat going ahead. Resistance is now seen at 74.50 while the immediate hurdle is pegged at 76.20, break past which will pave the way lower to around 77 in the near term.
(Bloomberg contributed to this story.)