Rupee hits a new low
Fear of delay in economic revival weakens currency
- The rupee hit a new low against the dollar as it dropped to 76.87 on Thursday amid concerns of a delay in economic revival following the spread of COVID-19.
- The domestic unit weakened with the dollar strengthening against various currencies.
- The rupee will continue to be under pressure till signs of the pandemic peaking emerge.
- The central bank has not been aggressive in stemming the rupee depreciation, rupee traded weak again as we enter the second day of the second lockdown, wherein the rules have become stringent.
- There is volatility in dollar-index trading. Rupee shall keep trading weak on the back of higher gold prices, along with a slowing economy.
- Rating agency Moody’s said some firms in south and southeast Asia could be vulnerable to the dollar’s surge.
- Depreciation of the Indonesian rupiah and Indian rupee increases risks for some companies with currency mismatches and heavy reliance on U.S. dollar debt.