BackIndian rupee opens at record low as coronavirus spooks markets
Traders now await retail inflation and factory output data due later todaySince middle of February, foreign investors have sold over $5.5 billion in equity and debt markets
PremiumNEW DELHI: The Indian rupee on Thursday opened near record low against the US dollar due to continued selling by foreign funds amid a fall in global equities and currencies on concerns over coronavirus outbreak.
Traders now await retail inflation and factory output data due later today.
The rupee had opened nearly 1% lower at 74.34 to near its record low of 74.48 -- a level last seen in October 2018.
India late on Wednesday suspended all existing visas issued to nationals of any country with some exceptions. Earlier, US President Donald Trump said the US would suspend all travel from Europe for the next 30 days to try and contain the coronavirus.
Crude oil sank 7%, falling over 25% this week, as the deteriorating demand outlook due to the virus, which the World Health Organization has now deemed a global pandemic, coincides with a price war between Saudi Arabia and Russia.
Since middle of February, foreign investors have sold over $5.5 billion in equity and debt markets.
"Convid-19 has put the world in a kind of lockdown situation, with more and more countries putting restriction on travel and force market in a melt-down situation. If the same continues, it may hamper the supply disruption and also dent other connected sectors which will create a significant halt in trading activities across and as a result reversal in the market might not be seen any soon. Therefore, we may not be different as sentiments drive the market more than reality," said CR Forex Advisors in a note to its investors.
Among Asian currencies, Philippine peso and South Korean won were down 1% each, Indonesian rupiah, Malaysian ringgit declined 0.7% each.
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