Indian rupee weakened against US dollar on Monday due to weak domestic equities tracking global peers which fell even after the Federal Reserve cut interest rates to near zero percent in an emergency move amid the economic impact of the corona virus outbreak for the second time in less than two weeks on Sunday, reducing to a target range of 0-0.25 percent. Meanwhile, the Reserve Bank of India (RBI) on Friday said it is closely monitoring the current global situation and assured that it will take all steps to keep markets adequately liquid and stable. The RBI earlier also announced measures to infuse liquidity in the foreign exchange market, including the US dollar swaps worth $2 billion. Furthermore, data showed Foreign investors remained net sellers in Indian capital markets for the fifth straight day, pulling out more than Rs 6,027.58 crore amid a global sell-off in equities.
The partially convertible currency is currently trading at 74.15, weaker by 40 paise from its previous close of 73.75 on Friday. The currency touched a high and low of 74.2300 and 74.0900 respectively. The reference rate for the dollar stood at 74.06 and for Euro stood at 82.95 on March 13, 2020. While the reference rate for the Yen stood at 70.21, the reference rate for the Great Britain Pound (GBP) stood at 93.00.
