Indian rupee fell sharply and breached the 75-mark against the US dollar on Thursday as market participants remained concerned over the sharp rise in coronavirus cases in India and its impact on the economy. Investor sentiment also remained fragile with exporters’ body Federation of Indian Export Organsations (FIEO) stating export sector has started feeling the pinch of the outbreak of coronavirus as international buyers are asking to hold back shipments. Some concern also came with the finance ministry’s data showed that total liabilities of the government increased to Rs 93.89 lakh crore at the end of December 2019, up 3.2 percent as compared to the previous quarter. A weak trend at Dalal Street coupled with US dollar’s gain against other currencies overseas weighed on the local unit. On the global front, dollar resumed its relentless climb against major currencies on Thursday as wild financial market volatility and worries over tightening liquidity triggered by the coronavirus pandemic sparked an investor flight into cash.
The last traded price of rupee was 75.07, 81 paise weaker from its previous close of 74.26 on Wednesday. The currency touched a high and low of 75.30 and 74.70 respectively. The reference rate for the dollar stood at 74.17 and for Euro stood at 81.72 on March 18, 2020. While the reference rate for the Yen stood at 69.39, the reference rate for the Great Britain Pound (GBP) stood at 89.75.
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