The Indian rupee dropped 75 paise to 74.16 against the U.S. dollar on Wednesday. The rupee fell to the lowest point since November 20, after the Reserve Bank of India made the decision to maintain the status quo on policy rates for the fifth time in a row. The country’s central bank kept its key policy repo rate unchanged at 4%. However, the Reserve Bank of India warned that the recent surge in Covid-19 infections created uncertainty regarding economic growth recovery.
When it came to the interbank forex market, the domestic unit opened at 73.52 versus the dollar, but then fell further to 74.16. It registered a fall 0f 75 paise over its previous close. One day before, the Indian rupee settled at 73.42 against the U.S. dollar.
Unsurprisingly, the Reserve Bank of India decided to keep the interest rates unchanged. The country’s central bank decided to keep an accommodative stance as the economy faces a renewed threat to growth. The resurgence of coronavirus cases represents a serious problem.
At the same time, the dollar index rose 0.6% to 92.38. This index measures the U.S. currency’s strength against the basket of six currencies.
Indian rupee and the coronavirus pandemic
The coronavirus pandemic remains one of the most important problems for many countries and India is not an exception. Unfortunately, the number of new coronavirus cases in the country reached a record daily high with over 1.15 lakh new infections being reported in a span of 24 hours.
Based on the information provided by the Union Health Ministry the nationwide Covid-19 tally reached 1,28,01,785. The situation regarding the pandemic in India is quite complicated. India’s Ministry of Information and Broadcasting even urged private TV channels to disseminate information about the pandemic.
According to Union Health Minister Harsh Vardhan, it seems that people abandoned measures like wearing masks to tackle the disease. Unfortunately, the number of coronavirus cases is increasing and along with that mortality is also on the rise.
The NCDC warned that the disease is spreading faster in the country than during the last year. The NCDC stands for National Centre for Disease Control. The world’s second-most populous country has the third-highest number of coronavirus cases in the world. At the moment, the U.S. has the highest number of cases followed by the biggest country in South America, Brazil.