As India’s daily Covid cases double in 10 days hitting the 2 lakh mark the nervousness is seen in the forex market with the Rupee tumbling to a 9-month low falling past the 75/dollar mark.
The rupee has now declined for six straight sessions touching the lowest level since July, 2019. The currency which was an outperformer vs other Asian currencies at the start of the year has wiped out all gains.
Infact for the year the currency is down 2.7% vs the dollar and all of those losses have come in the last 3 weeks. StanChart and Federal Bank see rupee falling further to 76/$ while Barclays expects the RBI to come in and defend the currency at these levels.