Rupee falls 70 paise as virus cases spike sharply

Crude price increase adds to pressure

A trader wearing protective hand gloves counts Indian currency notes at a market during a 21-day nationwide lockdown to limit the spreading of coronavirus disease (COVID-19), in Kochi, India, March 27, 2020. REUTERS/Sivaram V

The rupee declined 70 paisa against the dollar on Wednesday following a sharp rise in the number of COVID-19 cases in the country, which could prompt the government to delay the lifting of nationwide lockdown.

The rupee, which opened at 75.83 a dollar, as compared to its previous close of 75.64, depreciated further and went close to its all-time low of 76.38, touching the day’s low of 76.36.

Dollar index impact

The rupee ended the day at 76.34 a dollar, down 70 paisa, or 0.92%, than its previous close. The rise in crude prices and strengthening of the dollar index also added pressure on the rupee.

The Reserve Bank of India (RBI) reduced the timing of market hours for call money market, government securities market and currency market. These have been functioning between 10 a.m. and 2 p.m. since April 7. The shortened market hours will continue till April 17. The decision was taken to avoid undue volatility in the markets caused by thin volumes due to the nationwide lockdown.