Indian Rupee Crashes to Record Low of 74.50 against US Dollar and Recovers the Same Day

New Delhi, March 13, 2020:

The Indian rupee has slumped to a record low of 74.50 against the US dollar, surpassing the 74.48 mark in October, 2018.

According to a statement issued by the Reserve Bank of India, the financial markets globally are facing intense selling pressures on extreme risk aversion due to the spread of coronavirus infections and have caused a mismatch in dollar liquidity across the world. In the previous session, the rupee had closed at 74.21.

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However, the rupee later recovered to 74 against the US dollar, having traded in the range of 73.90 to 74.50. Meanwhile, trading on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) reopened for normal trading at 10:20 AM today after a temporary halt for 45 minutes. Nifty had dropped 10 percent in early trade to hit the lower circuit breaker as investors rushed for the exit. Sensex was down 9.43 percent.

The India Forex Advisors Pvt. Ltd. (IFA Global) said that the panic in equities has not snowballed into currencies to the same extent. It praised the RBI for containing volatility.

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